e-Prescribing: The First Step Towards Reform

Nov 11, 2008

The Centers for Medicare and Medicaid Services (CMS) recently announced the details of an electronic prescribing (e-prescribing) incentive program for physicians in Medicare. Under the program, physicians who use e-prescribing technology to deliver medication prescriptions to pharmacies will be eligible for a 2% increase in their Medicare payments. The program is seen as essential to address systemic needs of the troubled US health care system.

E-prescribing is the use of online, computerized tools to create and sign prescriptions. The system would replace the old pencil and pad prescription with the ability of a doctor’s office to electronically send prescription authorization directly to the pharmacy. Once fully adopted by the private sector, e-prescribing is expected to reduce administrative costs, medical errors and mortality rates.

CMS acting Administrator Kerry Weems stated, “ The Institute of Medicine says more than 1.5 million Americans are injured every year by drug errors.” Weems continues, “E-prescribing lets providers know – up front – their patients’ medical history and the risk of dangerous infections.”

The concept has been slow to integrate into the health care system because of the initial cost and issues with interoperability between doctor’s offices and hospitals, and the pharmacies that would receive the prescription. However, most health policy experts cite e-prescribing as one element to ensure a comprehensive reform of the health system that will bring dramatic safety and efficiency benefits to the prescribing process for patients and prescribers alike.

Congress passed the Medicare Improvements for Patients and Providers Act of 2008 in July to authorize the incentive program which will parallel existing incentive programs that require physicians to report quality measures. Many expect Congress to incorporate another element of health information technology in the 111th Congress that will allow for electronic health records to be made available.

NSBA is an advocate for the inclusion of health information technology. NSBA’s principles for health reform outline several health information technology initiatives that are essential to improve the US health system. NSBA believes that while health information technology is important, it is only one component to a system that needs comprehensive reform.