Senate OKs E-Script Incentives

HDM Breaking News, July 10, 2008

The U.S. Senate on July 9 passed legislation to revise several Medicare provisions and authorize incentive payments for use of electronic prescribing technology.

The House previously passed the bill, H.R. 6331, which now goes to President Bush for his signature. The bill’s major provisions eliminate cuts in physician fee schedules; delay cuts in Medicaid generic drug reimbursement; accelerate payments for Medicare Part D claims; hike payments to rural providers; increase funds to expand mental health parity and coverage of prevention services; and suspend the controversial durable medical equipment competitive bidding process.

The bill calls for Medicare incentive payments for e-prescribing of 2% in fiscal 2009 and 2010, 1% in 2011 and 2012, and 0.5% in 2013. The legislation also requires reporting of any e-prescribing quality measures established under Medicare’s physician reporting system. Beginning in 2012, payments to physicians not electronically prescribing would be reduced by 1%, then 1.5% in 2013 and 2% in subsequent years.

Text of the bill is available at congress.gov.

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