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CMS-1403-FC each year through CY 2014, and then is fixed at 2 percent for later years. For more information on the e-prescribing provisions of the MIPPA, please see section 132 of the MIPPA legislation enacted on July 15, 2008 (Pub. L. 110-275, http://frwebgate.access.gpo.gov/cgi- bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ275. 110.pdf). We envision that the MIPPA-created incentive payments for those prescribers who successfully implement electronic prescribing in accordance with MIPPA guidelines will provide the “tipping point” - an adequate level of industry adoption of e-prescribing using electronic data interchange (EDI) that would in turn move the entire industry toward widespread e-prescribing adoption. We believe that data from the e-prescribing incentive program under the MIPPA and eventually from Part D e-prescribing will offer evidence of the rate of e-prescribing adoption, therefore making a study of e-prescribing for purposes of determining e-prescribing adoption rates unnecessary. We analyzed the industry feedback that we received in response to the computer-generated facsimile exemption proposals in the CY 2009 PFS proposed rule in light of the recent MIPPA legislation. While the MIPPA legislation was not yet been enacted at the time of the CY 2009 PFS 338

CMS-1403-FC proposed rule's publication, it was enacted in time for commenters to discuss its provisions in their comments to our proposals. Based on MIPPA-based and other comments received in response to our proposal to further modify the computer-generated facsimile exemption, and taking into consideration the potential positive impact on the industry of the Part D e-prescribing incentives included in the recently-enacted MIPPA legislation, we are reinstating the original exemption for computer-generated facsimiles effective January 1, 2009. We also agree with those commenters who suggested that the computer-generated facsimile exemption should be eliminated (in all instances other than transient/temporary network transmission failures) once provider e-prescribing disincentives under the MIPAA program are initiated. Although several commenters suggested that we should wait until the disincentives are maximized in 2014, we feel that it is more appropriate to eliminate the reinstated exemption (in all instances other than temporary/transient network transmission problems) sooner, when the MIPPA e-prescribing program disincentives for those who are not successful electronic prescribers begin in 2012. We believe that the January 1, 2012 compliance date for the elimination of the computer-generated facsimile exemption 339

<strong>CMS</strong>-1403-FC<br />

proposed rule's publication, it was enacted in time for<br />

commenters to discuss its provisions in their comments to<br />

our proposals. Based on MIPPA-based and other comments<br />

received in response to our proposal to further modify the<br />

computer-generated facsimile exemption, and taking into<br />

consideration the potential positive impact on the industry<br />

of the Part D e-prescribing incentives included in the<br />

recently-enacted MIPPA legislation, we are reinstating the<br />

original exemption for computer-generated facsimiles<br />

effective January 1, 2009. We also agree with those<br />

commenters who suggested that the computer-generated<br />

facsimile exemption should be eliminated (in all instances<br />

other than transient/temporary network transmission<br />

failures) once provider e-prescribing disincentives under<br />

the MIPAA program are initiated.<br />

Although several commenters suggested that we should<br />

wait until the disincentives are maximized in 2014, we feel<br />

that it is more appropriate to eliminate the reinstated<br />

exemption (in all instances other than temporary/transient<br />

network transmission problems) sooner, when the MIPPA<br />

e-prescribing program disincentives for those who are not<br />

successful electronic prescribers begin in 2012. We<br />

believe that the January 1, 2012 compliance date for the<br />

elimination of the computer-generated facsimile exemption<br />

339

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