The 2009 American Recovery and Reinvestment Act (ARRA) authorized the Centers for Medicare & Medicaid (CMS) to offer a financial incentive to providers who are able to demonstrate "meaningful use" of an electronic health record system. Implementing an EHR that meets the "meaningful use" criteria below is not enough to qualify for stimulus incentives.
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	Has received CCHIT 2011 certification, the only acceptable certification at this time
	Uses the latest software standards (e.g., HL7, CCR, CCD) – necessary for interoperability
	Includes ePrescribing and automatic checks for drug-drug, drug-allergy, drug-formulary interactions
	Captures and stores discrete data in a structured database – the format required for reporting
	Facilitates the reporting of quality measures for current PQRI and pay-for-performance programs
	Incorporates protocols to automatically alert providers when health maintenance tests are due.
	Uses computerized physician order entry (CPOE) for all ordering

ARRA includes over $60B, designed to stimulate healthcare IT (HIT) adoption by the medical community over the next few years. Of the total money available, approximately $46B is dedicated to pay-for-performance and $14B to grants.

Medicare Incentives

	Incentives will start in 2011, and are available to all non-hospital physicians who see Medicare patients
	Eligible physicians can receive up to $44K over a five-year period
	Minimum for Medicare participation: Providers must bill 125% of the total incentive received over the five-year period of incentive distribution
	As noted above, providers must prove "meaningful use" of an EHR
	Physicians who have not adopted an EHR by January 1, 2015 will be penalized by reduced Medicare payments
	CMS has extended full Medicare ePrescribing one full year until the end of 2011
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Medicare Incentives Year Eligible in 2011 Eligible in 2012 Eligible in 2013 Eligible in 2014 Eligible in 2015 2011 $18,000 $0 $0 $0 $0 2012 $12,000 $18,000 $0 $0 $0 2013 $8,000 $12,000 $15,000 $0 $0 2014 $4,000 $8,000 $12,000 $12,000 $0 2015 $2,000 $4,000 $8,000 $8,000 $0 2016 $0 $2,000 $4,000 $4,000 $0 Total $44,000 $44,000 $39,000 $24,000 $0   Medicaid Incentives Medicaid incentives range up to $63.5K over a five-year period Minimum for Medicaid participation: 30% of a clinician's patients must use Medicaid, with the exception of pediatricians, who only need to have 20% of their patients using Medicaid Startup incentive up to $21,000 in state loan funds will be available in year one toward the purchase a certified EHR After receiving startup funds, providers who can prove "meaningful use" can receive up to $8,500 annually for an additional five years No penalities have been defined by Medicaid for lack of adoption