Managed Healthcare Executive - January 2009 - (Page 21)

{ PHARMACY BEST PRACTICES } Federal incentives up e-prescribing’s attraction Incentives might not encourage the hesitant to adopt e-prescribing, but penalties could push them along BY MARI EDLIN T Mari Edlin is a frequent contributor to MANAGED HEALTHCARE EXECUTIVE. She is based in Sonoma, Calif. adverse drug events. Will the new law serve as a bellwether for e-prescribing and help the technology turn the corner, not just for Medicare but also in the commercial environment? “CMS is sending a message that it wants all stakeholders to pay attention to e-prescribing immediately,” says Kathy Roe, partner, health law practice for Neal, Gerber and Eisenberg in Chicago. “It’s the right thing to do and can serve as the rst step for addressing spiraling healthcare costs. CMS is intent upon o ering incentives despite the state of the economy.” As a “ rst step,” e-prescribing is considered to be the entry point to developing an electronic medical record, which is a much more ambitious initiative. Many payers are following Medicare’s lead by supporting the adoption of e-prescribing by their provider networks through funding, training and incentives. Richard Popiel, MD, chief medical o cer for Horizon Blue Cross Blue Shield of New Jersey, sees the law as an empowerment tool for the adoption of e-prescribing. With more than 1,500 physicians in the Horizon network, HE PASSAGE OF THE MEDICARE Im- there are 1,000 active e-prescribers. Dr. provements for Patients and Physicians Act Popiel says that the insurer initiated an of 2008 begins a ve-year program, which e-prescribing program in 2001. It o ers combines a 2% incentive payment with a mandate incentives based on the percentage of to transmit orders for all prescriptions covered by total scripts that are written electroniMedicare Part D electronically this year. In 2011 cally to prevent an excess of overall and 2012, the payment will drop to 1%, and in prescriptions. 2013, to 0.5%. Physicians also will be penalized States are exploring some collabfor not e-prescribing—1% in 2012, 1.5% in 2013 orative initiatives, often supported by and 2% from 2014 onward. managed care insurers. Outgoing HHS Secretary Mike Leavitt calls Florida established ePrescribe Flore-prescribing an “economic imperative” and says ida, which supports the adoption of ethat Medicare is expected to save up to $156 mil- prescribing by physicians with incenlion over ve years by preventing some 530,000 tives from health plans and the state to JANUARY 2009 Chris Ryan/Getty Images 21

Table of Contents Feed for the Digital Edition of Managed Healthcare Executive - January 2009

Managed Healthcare Executive - January 2009 Contents Editorial Advisors For Your Benefit News Analysis Politics & Policy Letter of the Law Managed Care Outlook New Day 5 New Realities of Disease Management Pharmacy Best Practices Health Management Technology State Report: Hawaii MHE Resource Ad/Edit Index

Managed Healthcare Executive - January 2009

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