All about ARRA Stimulus Money
Demonstrating meaningful use of a certified EMR is the key requirement for eligible professionals to meet in order to receive Medicare and Medicaid incentive payments under the American Recovery and Reinvestment Act of 2009.

EMR Stimulus Payments Medicare
  • Who is eligible? Physicians, dentists, podiatrists, optometrists, and some chiropractors.
  • Meaningful use year: 1/1/2011. What does this mean to you? Implementation of a small practice should ideally start no later than early 2011 to ensure meaningful use can be reported in the 2011 reporting year - as it takes time to train, install, and begin to demonstrate and report on ’meaningful use’.
  • Payout Starts: Payments expected to begin May of 2011 according to final rules released July 13th, 2010.
  • Payment Details: Incentive payments equal 75% of allowed charges. $15,000 (1st year), $12,000 (2nd year), $8000 (3rd year), $4000 (4th year), $2000 (5th year), $0 for subsequent years. Note: early adopters (meaningful users in 2011, 2012) will be eligible for increased first year payment of $18,000. Example: Providers who bill $24,000 or greater annually will receive the maximum benefit ($18,000 - or 75% of allowable Medicare charges).
  • Penalties/Deductions. Beginning in 2015 and accelerating in subsequent years, non-adopters who are not meaningfully using a Certified EHR, fee schedules will be reduced as follows:
    • 2015 - 1% Reduction
    • 2016 - 2% Reduction
    • 2017 - 3% Reduction
    • 2018 - 4% (Secretary of HHS Option if fewer than 75% of eligible professionals are not meaningfully using a certified EHR)
    • 2018 - 5% (Secretary of HHS Option if fewer than 75% of eligible professionals are not meaningfully using a certified EHR)
MEDICARE ELECTRONIC MEDICAL RECORDS STIMULUS
ELECTRONIC HEALTH RECORDS SOFTWARE
EHR Adoption 2011
EHR Adoption 2012
EHR Adoption 2012
EHR Adoption 2014
EHR Adoption 2015
2011($)
$18,000
0
0
0
0
2012($)
$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
EMR Stimulus Payments Medicaid
  • Who is eligible? Physicians, dentists, certified nurse mid-wife, nurse practitioners, and physician assistants practicing in a rural health clinic or Federally Qualified Health Clinic (FQHC). Eligible professionals cannot be hospital based, and patient volume must be comprised of at least 30% Medicaid patients. Pediatricians (again, non-hospital based) are eligible for Medicaid incentives with 20% Medicaid patient volume.
  • Meaningful use year: 1/1/2010. What does this mean to you? Implementation of an EHR for Medicaid providers should begin immediately to ensure to be eligible for the earliest payments - as it takes time to train, install, and begin to demonstrate and report on ’meaningful use’.
  • Payout Starts: Eleven states - Alaska, Iowa, Kentucky, Louisiana, Oklahoma, Michigan, Mississippi, North Carolina, South Carolina, and Tennessee opened registration on January 3rd, 2011 and four additional states (Texas, California, Missouri, and North Dakota) open in February 2011. The remaining states will roll out their Medicaid EMR incentive registration periods throughout spring and summer of 2011.
  • Payment Details: Incentive payments equal 85% of net allowable charges, and based upon EHR expenditures. $15,000 (1st year), $12,000 (2nd year), $8000 (3rd year), $4000 (4th year), $2000 (5th year), $0 for subsequent years. Note: early adopters (meaningful users in 2011, 2012) will be eligible for increased first year payment of $18,000.
MEDICAID ELECTRONIC MEDICAL RECORDS STIMULUS
ELECTRONIC HEALTH RECORDS SOFTWARE
EHR Adoption 2011
EHR Adoption 2012
EHR Adoption 2012
EHR Adoption 2014
EHR Adoption 2015
EHR Adoption 2015
2011($)
$21,250
0
0
0
0
0
2012($)
$8,500
$21,250
0
0
0
0
2013($)
$8,500
$8,500
$21,250
0
0
0
2014($)
$8,500
$8,500
$8,500
$21,250
0
0
2015($)
$8,500
$8,500
$8,500
$8,500
$21,250
0
2016($)
$8,500
$8,500
$8,500
$8,500
$8,500
$21,250
2017($)
0
$8,500
$8,500
$8,500
$8,500
$8,500
2018($)
0
0
$8,500
$8,500
$8,500
$8,500
2019($)
0
0
0
$8,500
$8,500
$8,500
2020($)
0
0
0
0
$8,500
$8,500
2021($)
0
0
0
0
0
$8,500
TOTAL
$63,750
$63,750
$63,750
$63,750
$63,750
$63,750