The Patient Access and Medicare Protection Act, S. 2425, passed by the U.S. Senate and House of Representatives on December 18, included a provision that could spare physicians and hospitals a 3% Medicare pay cut in 2017 under the Centers for Medicare & Medicaid Services' "meaningful use" rules. Under CMS's Medicare and Medicaid EHR Incentive Programs, physicians and hospitals are required to demonstrate "meaningful use" of electronic health record technology in three stages, as discussed here.
A Final Rule issued by CMS in October reduced the required EHR reporting period for 2015 from one year to 90 days. Under current law, physicians and hospitals can apply for a hardship exemption from the 2017 penalty under the category of "extreme and uncontrollable circumstances," which CMS then reviews on a case-by-case basis. It would have been impossible for CMS to review all the exemption requests in the revised timeframe. The bill, which is expected to be signed by the President, will address the looming bureaucratic gridlock by granting hardship exemptions to entire categories of physicians and hospitals.
The exemption is not automatic. Eligible professionals will need to apply for the exemption by March 15, 2016, and eligible hospitals will have until April 1, 2016.
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