Incentives and Penalties for Meaningful Use

Medicaid Meaningful Use Incentives & Penalties

Incentive payments for Medicaid clinicians are spread out over time. Unlike Medicare where clinicians had to start in 2011 to receive the maximum incentive, Medicaid Meaningful Use clinicians can qualify in the 2016 performance year and still receive payouts through 2021, totaling the full incentive amount of $63,750.

Penalties for dual-eligible Medicaid/Medicare providers who haven't transitioned to Meaningful Use started in 2015. This penalty is one percent in 2015, two percent in 2016, and three percent in 2017. While that may seem like a small amount, it can add up to a significant fee for hospitals and other providers who decide they are not going to comply with Meaningful Use.

The best way to avoid penalties is to start immediately and then ensure that compliance is being maintained every year after that. Not only will this avoid penalties, but it will allow for the maximum incentives and provide a higher level of quality care to any and all patients being seen during that time.

Payments are staggered depending on when organizations begin to participate. CMS has outlined the schedule below through 2021:

 Medicaid EP Qualifies to Receive First Payment in 2011Medicaid EP Qualifies to Receive First Payment in 2012Medicaid EP Qualifies to Receive First Payment in 2013Medicaid EP Qualifies to Receive First Payment in 2014Medicaid EP Qualifies to Receive First Payment in 2015Medicaid EP Qualifies to Receive First Payment in 2016
Payment Amount in 2011$21,250$0.00$0.00$0.00$0.00$0.00
Payment Amount in 2012$8,500$21,250$0.00$0.00$0.00$0.00
Payment Amount in 2013$8,500$8,500$21,250$0.00$0.00$0.00
Payment Amount in 2014$8,500$8,500$8,500$21,250$0.00$0.00
Payment Amount in 2015$8,500$8,500$8,500$8,500$21,250$0.00
Payment Amount in 2016$8,500$8,500$8,500$8,500$8,500$21,250
Payment Amount in 2017$0.00$8,500$8,500$8,500$8,500$8,500
Payment Amount in 2018$0.00$0.00$8,500$8,500$8,500$8,500
Payment Amount in 2019$0.00$0.00$0.00$8,500$8,500$8,500
Payment Amount in 2020$0.00$0.00$0.00$0.00$8,500$8,500
Payment Amount in 2021$0.00$0.00$0.00$0.00$0.00$8,500
Total Incentive Payments$63,750$63,750$63,750$63,750$63,750$63,750


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