Sequestration May Impact EHR Incentive Payments

Just as the rest of the nation is beginning to feel the impact of sequestration, eligible professionals and eligible hospitals may feel the pinch soon.

According to the Office of the National Coordinator (ONC), incentive payments made through the Medicare Electronic Health Records (EHR) Incentive Program are subject to sequestration.

The American Taxpayer Relief Act of 2012 postponed sequestration for two months. As required by law, President Obama issued a sequestration order on March 1, 2013.

Under these mandatory reductions, Medicare EHR incentive payments made to eligible professionals and eligible hospitals will be reduced by 2 percent. This 2 percent reduction will be applied to any Medicare EHR incentive payment for a reporting period that ends on or after April 1, 2013. If the final day of the reporting period occurs before April 1, 2013, those incentive payments will not be subject to the reduction.

However, the reduction does not apply to Medicaid EHR incentive payments, which are exempt from the mandatory reductions.

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Retrieved From:
Inside Healthcare IT
May 6th, 2013