CMS State Medicaid Director Letter Issues Technical Changes on Medicaid EHR Incentive Program - April 12, 2011

Cindy Mann, the director of the federal Center for Medicaid and State Operations, on April 8 issued a State Medicaid Director Letter to clarify technical changes to the Medicaid electronic health record (EHR) Incentive Program made in the Medicare and Medicaid Extenders Act of 2010. In order to receive the maximum payments defined by CMS ($21,250 for the first year, $8,500 for each remaining year) under the CMS Final Rule, Medicaid eligible professionals (EPs) were required to document that a) they contributed 15 percent of EHR costs each year, and b) they did not receive other payments for EHR in excess of a regulatory threshold. Under the Extenders Act, CMS has eliminated these documentation requirements. Medicaid EPs will be deemed to have contributed at least 15 percent of costs for EHR technology and to have contributions from other sources under the regulatory limit as long as the EP’s incentive payment is not more than the limit defined by CMS – i.e., $21,250 in the first year of payments.