Under the sequestration order issued by President Barack Obama on March 1, Medicare EHR incentive payments made to eligible professionals and eligible hospitals will be reduced by 2 percent. That reduction is now in effect.
According to the Centers for Medicare & Medicaid Services (CMS), which administers the EHR incentive programs, the 2 percent reduction will be applied to any Medicare EHR incentive payment for a reporting period that ends on or after April 1, 2013. CMS noted that if the final day of the reporting period occurred before April 1, those payments would not be subject to the reduction.
CMS also emphasized that the reduction does not apply to Medicaid EHR incentive payments, which are exempt from the mandatory reductions.
The EHR bonus for meaningful use in 2013 under the Medicare incentive program is $15,000 for first-time recipients.
For further information on CMS' EHR incentive programs, click here.