Starting in 2011, physicians are eligible to receive Medicare incentive payments for being a “meaningful user of a certified EHR”. These incentive payments are calculated on a per physician basis. The proposed payments are greatest in the first year, decreasing in amount for the following four years or until 2016, depending on the incentive program.

Physicians who do not meet the “meaningful user” criteria will face penalties, calculated as a percentage of allowed charges, beginning in 2015 with a one percent penalty. These penalties increase each year up to a maximum potential cap of five percent per year for 2017 and beyond.

Medicare incentives will not be paid to hospital-based professionals, such as emergency physicians, anesthesiologists or pathologists.