EHR Meaningful Use Penalty Will Not Apply to Independent Laboratories

Pathologists at independent laboratories will not be penalized under the Medicare Electronic Health Record (EHR) Incentive Program beginning in 2015, according to the College of American Pathologists (CAP). The incentive program requires physicians to demonstrate meaningful use of EHR technology and is designed with office-based physicians in mind. CMS provides bonuses to physicians participating in the program. In 2015 the agency will begin penalizing physicians who do not demonstrate meaningful use by imposing a penalty of 1 percent of the Medicare Physician Fee Schedule covered amount. Penalties increase to 2 percent in 2016, 3 percent in 2017, and could increase to as much as 5 percent in later years.

Pathologists billing only the professional component of Medicare services and Provider Enrollment, Chain and Ownership System code 22 on claims will automatically be granted a hardship and will not be penalized in 2015, says CAP, which sought clarification on this issue.  Since penalties can last for several years after that, CAP is advocating that CMS and Congress ensure this relief is continued as payment penalties could eventually reach as much as 5 percent of a pathologist’s Medicare Part B payments. The CAP-supported H.R. 1309, the Health Information Technology Reform Act, would exclude all pathologists from program eligibility.