Impact of Sequestration on MU Payments

by Louis Wenzlow on April 17, 2013

According to a recent CMS news release, the 2% smandatory spending reductions known as sequestration will apply to Medicare EHR incentive payments for reporting periods that end on or after April 1, 2013. Hospitals and EPs that have 90 day reporting periods that end prior to April 1 will not be subject to the reductions even if they attest after April 1. Payments to hospitals and EPs that are in a 2013 full year reporting period will be subject to the 2% reduction. Payments associated with the Medicaid EHR incentive program are exempt from the 2% reductions. Below find the CMS news release:

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In a new FAQ, CMS has indicated that providers that contribute information to a shared patient portal can count applicable patients (those seen or discharged during the reporting period) in their numerator even if these patients do not access the specific information the provider posted to the portal. This FAQ has particular implications for providers that seek to utilize shared portals for their ambulatory and inpatient populations, and those that share a community portal through an HIE. Below find the complete FAQ text.

[EHR Incentive Programs]  If multiple eligible professionals or eligible hospitals contribute information to a shared portal or to a patient’s online personal health record (PHR), how is it counted for meaningful use when the patient accesses the information on the portal or PHR?

This answer is relevant to the following meaningful use measure:

For Eligible Professionals (EPs): “More than 5 percent of all unique patients seen by the EP during the EHR reporting period (or their authorized representatives) view, download or transmit to a third party their health information.”

For Eligible Hospital and Critical Access Hospital: “More than 5 percent of all unique patients (or their authorized representatives) who are discharged from the inpatient or emergency department (Place of Service 21 or 23) of an eligible hospital or CAH view, download or transmit to a third party their information during the EHR reporting period.”

If the patient was seen by an EP or discharged from a hospital during the EHR reporting period, the patient would be counted in the numerator for this measure if the patient (or his/her authorized representatives) views online, downloads, or transmits to a third party any of the health information from the shared portal or online PHR.  This is regardless of whether the EP or hospital contributed the particular information that was viewed, downloaded, or transmitted by the patient.  However, the EP or hospital must have contributed at least some of the information identified in the Stage 2 final rule to the shared portal or online PHR for the patient.

Last updated 2/28/2013

(FAQ7735)

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Stage 2 Meaningful Use 2014 Clinical Quality Measure Report

February 17, 2013

This Stage 2 HIT Incentive Final Rule 2014 Hospital Clinical Quality Measure Challenge Identification Report summarizes the 2014 meaningful use CQM reporting requirements and identifies various challenges associated with the CQMs. The report was developed by Beth Dibbert and Louis Wenzlow of the Rural Wisconsin Health Cooperative and funded by the Wisconsin Office of Rural Health. As always, comments [...]

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Final HIPAA Modification Rule Released

January 19, 2013

Final HIPAA Modification Rule Released On January 17th the Department of Health and Human Services released a final rule that modifies various HIPAA and HITECH provisions. The compliance date for the modifications has been set for September 23rd, 2013. Below is a summary of the major provisions (copied directly from the final rule document). “ii. [...]

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CAH Method II Physicians Now Eligible For Incentives

January 11, 2013

CMS has released a fact sheet indicating that system changes are being made that will allow CAH method II physicians to participate in the EHR incentive program.  Those CAH method II eligible professionals that begin participating in calendar year  2013 will be eligible to earn a maximum of $39,000 in incentives, and all method II [...]

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FCC Healthcare Connect Fund Will Benefit Rural Health

January 7, 2013

FCC Healthcare Connect Fund Will Benefit Rural Health On December 21st the FCC released a final order creating the Healthcare Connect Fund (HCF). The HCF order reforms the current Rural Healthcare Universal Service Fund (which subsidizes rural provider broadband and Internet needs) and transitions the expiring Rural Health Care Pilot Program (which subsidizes rural healthcare [...]

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FCC Healthcare Connect Fund Announced

December 13, 2012

The FCC today announced the establishment of a new Healthcare Connect Fund that reforms the current USAC Rural Health Program. The new program will fund 65% of eligible telecommunications costs and will encourage network development between rural and urban healthcare providers. More information is available at the link below. Expect a follow-up post once the associated order is [...]

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CMS Releases Stage 2 Specification Sheets

November 12, 2012

CMS today released Stage 2 meaningful use objective specification sheets that provide details on how the Stage 2 objectives will need to be met by Eligible Professionals, CAHs, and Eligible Hospitals. Click on this link for the Eligible Professional specification sheets. Click on this link for the Eligible Hospital/CAH specification sheets. Additional information is available at the CMS [...]

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CMS Stage 2 FAQs Relating to Summary of Care Exchange

November 6, 2012

CMS Stage 2 FAQs Relating to Summary of Care Exchange CMS has released two FAQ responses that describe: (1) the approaches that technology developers can use to meet the transitions of care certification criteria, and (2) the approaches that EPs, Hospitals, and CAHs can use to meet the transitions of care objective/measure. Below is the [...]

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First Glance at the Stage 2 Final Rule: Impact on Rural Hospitals

August 26, 2012

The Stage 2 EHR Incentive Program Final Rule, released on August 23rd, provides significant additional flexibility and is a great improvement over what was proposed. It seems to me that CMS and ONC have listened to provider concerns (rural included) and have crafted a regulation that is likely to be reasonably achievable by those rural providers [...]

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