The Health Information Technology for Economic and Clinical Health (HITECH) Act provisions within the American Recovery and Reinvestment Act of 2009 (ARRA) provides eligible professionals(EPs),non-hospital-based physicians, and eligible hospitals with an opportunity to earn federal funding bonus incentives when promoting the use of health information technology(HIT) and qualified Electronic Health Records (EHRs). EP’s that implement EHRs can earn up to $44,000 in incentive bonuses over a five-year period under Medicare. To earn this, practices must use a certified EHR and demonstrate “meaningful use” of the EHR solution by 2011. EPs and Eligible Hospitals who prove meaningful use are eligible for significant bonuses under Stage One, Stage Two and Stage Three objectives.

![]()
The HITECH Act establishes incentive payments for the meaningful use of certified EHR technology by EPs participating in the original Medicare program now referred to as Medicare Fee-for-Service (FFS) program beginning in calendar year 2011. As defined by CMS, “Meaningful Use” describes the use of HIT that furthers the goals of information exchange among health care professionals.
![]()
HITECH ACT also provides incentive payments to Medicare Advantage (MA) organizations for their affiliated EPs who meaningfully use certified EHR technology and meet certain other requirements, and requirement to make a downward adjustment to Medicare payments to MA organizations for professional services provided by any of their affiliated EPs who are not meaningful users of certified EHR technology, beginning in 2015.
![]()
HITECH Act provides100 percent Federal financial participation (FFP) to States for incentive payments to certain eligible providers participating in the Medicaid program to purchase, implement, and operate (including support services and training for staff) certified EHR technology and 90 percent FFP for State administrative expenses related to the program to establish a program with input from the States to provide incentives for the adoption and subsequent meaningful use of certified EHR technology for providers participating in the Medicaid program.
The HITECH Act creates incentives in the Medicare Fee-for-Service (FFS), Medicare Advantage (MA), and Medicaid programs for demonstrating meaning EHR use and payment adjustments in the Medicare FFS and MA programs for not demonstrating meaningful EHR use. The three incentive programs contain many common elements and certain provisions of the HITECH Act encourage avoiding duplication of payments, reporting, and other requirements, particularly in the area of demonstrating meaningful use of certified EHR technology. Eligible hospitals may participate in either one of the Medicare (FFS or MA) programs and the Medicaid program, assuming they meet each program’s eligibility requirements, which vary across programs. EPs may have the opportunity to participate in either the Medicare or Medicaid incentive programs, and once an EP has picked a program, they are permitted to make a one-time switch from one program to the other.