Medicare

Final 2009 physician payment rule implements new electronic prescribing incentive program

The Centers for Medicare & Medicaid Services (CMS) recently announced a new initiative for physicians and other eligible health care professionals to improve efficiency and safety when ordering medications for patients with Medicare. The initiative, which encourages providers to discontinue use of prescription notepads, is included in the Medicare Physician Fee Schedule (MPFS) final rule for the 2009 calendar year.

Physicians and other eligible health care professionals who use qualified e-prescribing systems to transmit prescriptions to pharmacies may earn an incentive payment of 2% of their total Medicare-allowed charges during 2009.

To participate in the e-prescribing incentive program, you need to have a qualified e-prescribing system that must be able to:

  • Communicate with the patient's pharmacy
  • Help identify appropriate medications and provide information on lower-cost alternatives
  • Provide information on formulary medications
  • Generate alerts about possible adverse events, such as improper dosing, medication-to-medication interactions or allergy concerns


Electronic prescribing can eliminate medication errors that result from misread handwritten prescriptions. Medicare beneficiaries may also have reduced out-of-pocket costs as e-prescribing facilitates better communication between prescribers and pharmacies on lower-cost generic alternatives.

The Institute of Medicine reports that more than 1.5 million Americans are affected every year by medication errors. E-prescribing informs you immediately of a patient's medication history and the risk of dangerous interactions.

For more detailed information on this and other CMS topics, please visit the CMS Web site.