What are the Medicaid EHR incentives in the stimulus package?
The stimulus package also includes incentives for Medicaid providers to adopt EHRs. This incentive program differs considerably from the one developed for Medicare physicians. The Medicaid incentive program reimburses providers to obtain the technology. The HHS secretary will determine payment timing and application processes. The government will calculate the average allowable costs for adopting, implementing, upgrading and maintaining certified EHR systems. The maximum incentive amount is $25,000 the first year – providers are eligible for 85 percent ($21,500). The maximum payment for ongoing costs not associated with the purchase or implementation of the EHR may not exceed $10,000 per year; you cannot make the purchase over a period of five years. Providers will be eligible for a maximum of 85 percent of the $10,000 – or $8,500 a year). The aggregate allowable costs, after the 85 percent adjustment, may not exceed $63,750 in total payments. Departing from the Medicare incentive mode
