Skip to Main Content

Medicare and Medicaid EHR Incentive Program Basics

Medicare and Medicaid EHR Incentive Program Basics


This page provides basic information to eligible professionals participating in the Medicare and Medicaid EHR Incentive Programs. Eligible hospitals can find information on the Eligible Hospital Information page.

Basic Information for Eligible Professionals Participating in the Medicare EHR Incentive Program:

  • The program started in 2011, and payments will continue through 2016.
  • Eligible professionals can participate for up to 5 continuous years throughout the duration of the program.
  • The last year to begin participation and receive an incentive payment is 2014.
  • To receive the maximum incentive payment, eligible professionals must have started participation by 2012.
  • Eligible professionals who demonstrate meaningful use of certified EHR technology can receive up to $43,720 over 5 continuous years.
  • To qualify for incentive payments, eligible professionals must successfully demonstrate meaningful use for each year of participation in the program.
  • Beginning in 2015, eligible professionals who do not successfully demonstrate meaningful use will be subject to a payment adjustment. The payment reduction starts at 1% and increases each year that an eligible professional does not demonstrate meaningful use, to a maximum of 5%.

Medicare EHR Incentive Payment Schedule for Eligible Professionals*

  First Payment Received in 2011 First Payment Received in 2012 First Payment Received in 2013 First Payment Received in 2014
Payment Amount in 2011 $18,000      
Payment Amount in 2012 $12,000 $18,000    
Payment Amount in 2013 $7,840
Reduction ($160)
$11,760
Reduction ($240)
$14,700
Reduction ($300)
 
Payment Amount in 2014 $3,920
Reduction ($80)
$7,840
Reduction ($160)
$11,760
Reduction ($240)
$11,760
Reduction ($240)
Payment Amount in 2015 $1,960
Reduction ($40)
$3,920
Reduction ($80)
$7,840
Reduction ($160)
$7,840
Reduction ($160)
Payment Amount in 2016   $1,960
Reduction ($40)
$3,920
Reduction ($80)
$3,920
Reduction ($80)
TOTAL Incentive Payments $43,720 $43,480 $38,220 $23,520

*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%. This 2% reduction has been applied to any Medicare EHR incentive payment for a reporting period that ended on or after April 1, 2013. This reduction does not apply to Medicaid EHR incentive payments.

  • Basic Information for Eligible Professionals Participating in the Medicaid EHR Incentive Program:
  • The program is administered voluntarily by states and territories, and will pay incentives through 2021.
  • Eligible professionals can participate for 6 years, and participation years do not have to be consecutive.
  • The last year that an eligible professional can begin participation is 2016.
  • Incentive payments for eligible professionals are higher under the Medicaid EHR Incentive Payments— up to $63,750 over 6 years.
  • Eligible professionals can receive an incentive payment for adopting, implementing, or upgrading, certified EHR technology in their first year of participation.
    • In subsequent years, eligible professionals can receive incentive payments for successfully demonstrating meaningful use.
  • If you qualify for both the Medicare and Medicaid EHR Incentive Programs, you must choose which program you want to participate in.
  • If you are only eligible for the Medicaid EHR Incentive Program, you will not be subject to payment adjustments.
  • Medicaid eligible professionals who also treat Medicare patients will have a payment adjustment to Medicare reimbursements starting in 2015 if they do not successfully demonstrate meaningful use.

Medicaid EHR Incentive Payment Schedule for Eligible Professionals

  First Payment Received in 2011 First Payment Received in 2012 First Payment Received in 2013 First Payment Received in 2014 First Payment Received in 2015 First Payment Received in 2016
Payment Amount in 2011 $21,250.00 $0.00 $0.00 $0.00 $0.00 $0.00
Payment Amount in 2012 $8,500.00 $21,250.00 $0.00 $0.00 $0.00 $0.00
Payment Amount in 2013 $8,500.00 $8,500.00 $21,250.00 $0.00 $0.00 $0.00
Payment Amount in 2014 $8,500.00 $8,500.00 $8,500.00 $21,250.00 $0.00 $0.00
Payment Amount in 2015 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $21,250.00 $0.00
Payment Amount in 2016 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $21,250.00
Payment Amount in 2017 $0.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00
Payment Amount in 2018 $0.00 $0.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00
Payment Amount in 2019 $0.00 $0.00 $0.00 $8,500.00 $8,500.00 $8,500.00
Payment Amount in 2020 $0.00 $0.00 $0.00 $0.00 $8,500.00 $8,500.00
Payment Amount in 2021 $0.00 $0.00 $0.00 $0.00 $0.00 $8,500.00
TOTAL Incentive Payments $63,750.00 $63,750.00 $63,750.00 $63,750.00 $63,750.00 $63,750.00