Meaningful Use

The American Recovery and Reinvestment Act of 2009 (Recovery Act) authorizes the Centers for Medicare & Medicaid Services (CMS) to provide reimbursement incentives for eligible professionals and hospitals who are successful in becoming “meaningful users” of certified electronic health record (EHR) technology.  The Medicare EHR incentive program will provide incentive payments to eligible professionals (EPs), eligible hospitals, and critical access hospitals (CAHs) that are meaningful users of certified EHR technology.

The Medicaid EHR incentive program will provide incentive payments to eligible professionals and hospitals for efforts to adopt, implement, or upgrade certified EHR technology or for meaningful use in the first year of their participation in the program and for demonstrating meaningful use during each of five subsequent years.  These incentive payments begin in 2011 and gradually decrease. Starting in 2015, providers are expected to have adopted and be actively utilizing a certified EHR in compliance with the "meaningful use" definition or they will be subject to financial penalties under Medicare. The focus on meaningful use is a recognition that better health care does not come solely from the adoption of technology itself but through the exchange and use of health information to best inform clinical decisions at the point of care.

Final Rule

Meaningful Use Final Rule [PDF - 13.94 MB]

There are three fundamental criteria for achieving meaningful use:

1. Use of certified EHR technology in a meaningful manner;
2. Certified EHR technology is connected in a manner that provides for the electronic exchange of health information to improve the quality and coordination of care; and,
3. In using certified EHR technology, the provider submits clinical quality measures and other measures as determined by the secretary.

Meaningful use requirements are organized to meet the following health care goals:

• Improve quality, safety, efficiency, and reduce health disparities;
• Engage patients and families in their health care;
• Improve care coordination;
• Improve population and public health; and,
• Ensure adequate privacy and security protections for personal health information.

Understanding the EHR Incentive Final Rule: A KHA Perspective [PDF - 1.91 MB]

CMS Tip Sheets 

CMS Tip Sheet: Medicare EHR Incentive Payments for Eligible Professionals
This tip sheet describes which types of individual practitioners can participate in the Medicare EHR incentive program. It provides user friendly information about incentive payment amounts and describes how they are calculated for fee for service and Medicare advantage providers. It also describes payment adjustments beginning in 2015 for EPs who are not meaningful users of certified EHR technology. 

CMS Tip Sheet: EHR Incentive Program for Medicare Hospitals
Learn which Medicare hospitals are eligible for incentive payments. (See the separate tip sheet for Critical Access Hospitals below.) This sheet provides user friendly information about the factors which impact incentive payment amounts and provides sample payment calculations.

CMS Tip Sheet: EHR Incentive Program for Critical Access Hospitals
How are Medicare incentive payments calculated for CAHs? When can they be earned? Learn more in this informative discussion of the calculation of incentive payments. Sample calculations are provided. This sheet also provides information on how reimbursement will be reduced for CAHs which have not demonstrated meaningful use of certified EHR technology by 2015.