How Much Does eRx Cost?
When you evaluate the costs of ePrescribing, it's important to look at both the financial expense and the potential benefits for your practice over time.
Key considerations discussed in this section:
- Upfront and ongoing costs
- Financing options
- Available incentives
- The anticipated benefits once your practice is comfortable with your new system
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Frequently Asked Questions
General
Learn About ePrescribing
Calculate Your Savings
Your time savings is estimated using an average amount of time that physicians and staff spend on prescription renewal requests, as well as an average amount of time that staff spend on related calls such as clarifications and formulary calls.
Your time savings is estimated using an average amount of time that physicians and staff spend on prescription renewal requests, as well as an average amount of time that staff spend on related calls such as clarifications and formulary calls.
Find an ePrescribing System
How can I contact the AMA about ePrescribing?
Click the feedback icon in the lower right corner of the page to send an email to the AMA.
I want to download a page. Do I need certain software?
No. But to view PDFs you will need to download Adobe Reader (for free).
Who can access this site?
Anyone can access the site. But certain parts are only available to AMA members, including some of the more in-depth content and resources.
Learn About ePrescribing
Where can I go for more information about ePrescribing?
A number of recommended resources are available for download to members on this site.
I clicked on a link and nothing happened. Why not?
Most likely, your pop-up blocker prevented the link from opening. Go to your browser settings to temporarily disable pop-up blocking.
Calculate Your Savings
How are my Medicare ePrescribing Incentive and time savings calculated?
Your incentive payment is estimated by multiplying your total Medicare Part B charges by the incentive payment rate for each year from 2009 to 2013.Your time savings is estimated using an average amount of time that physicians and staff spend on prescription renewal requests, as well as an average amount of time that staff spend on related calls such as clarifications and formulary calls.
How are my Medicare ePrescribing Incentive and time savings calculated?
Your incentive payment is estimated by multiplying your total Medicare Part B charges by the incentive payment rate for each year from 2009 to 2013.Your time savings is estimated using an average amount of time that physicians and staff spend on prescription renewal requests, as well as an average amount of time that staff spend on related calls such as clarifications and formulary calls.
Who can use this calculator?
"Calculate Practice Impact" is a benefit of AMA membership, so it's available only to current members of the AMA.
Find an ePrescribing System
Where does the system information come from?
All of the information shown about a system has been provided by the vendor and hasn't been evaluated by the AMA.
Who can use this resource?
"Find an ePrescribing System" is a benefit of AMA membership, so it's available only to current members of the AMA.
Glossary
Authorization level
The level of access or authority assigned to a user of an ePrescribing or EMR system.
Certification Commission for Health Information Technology (CCHIT)
A recognized certification body for electronic health records and their networks, and an independent voluntary private-sector initiative. Their mission is to accelerate the adoption of health information technology by creating an efficient, credible and sustainable certification program.
Clinical decision support
Computer applications that link health knowledge data with patient-specific data and are designed to assist physicians and other health professionals with decision-making tasks.
Electronic signature
An electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
Favorites list
A feature included in most ePrescribing systems that allows the prescriber to create custom shortcut lists of frequently prescribed medications and frequently used SIGs. For the prescriber, time spent upfront in creating these lists is well spent as they greatly facilitate the prescribing process and impact prescriber satisfaction with ePrescribing.
Medicare Modernization Act of 2003 (MMA)
The law that authorized the Medicare Part D drug program. Even though the act applies to a single federal program, it is likely to drive transaction practices in almost all of healthcare.
Doctors are not required by the act to prescribe electronically. However, the Medicare Modernization Act regulations do require that after 2009, physicians and pharmacies that prescribe electronically for Medicare Part D beneficiaries must utilize the final standards for transactions approved by the Center for Medicare and Medicaid Services (CMS).
According to regulations, health plans (Part D sponsors) are required to establish and maintain after 2009 an electronic prescription drug program that complies with transaction standards adopted by CMS.
Medicare Improvements for Patients and Providers Act of 2008 (MIPPA)
The law that authorized the creation of the Medicare Electronic Prescribing Incentive Program.
The incentive program provides for an incentive payment to eligible professionals who successfully ePrescribe medications in 2009 and 2010 equal to 2 percent of their total Medicare payments for the year. The incentive amount is reduced to 1 percent in 2011 and 2012 and is finally reduced to 0.5 percent in 2013.
Penalties for physicians who do not adopt ePrescribing systems begin at 1 percent in 2012 and increase to 2 percent by 2014.
National Provider ID (NPI)
A unique identifier used by CMS to identify an individual health care provider to Medicare Part D sponsors, prescribers and dispensers, in electronically transmitted prescriptions or prescription-related materials for Medicare Part D covered drugs and Medicare Part D eligible individuals.
It is important to note that the NPI is used to identify the individual prescriber and dispenser in the electronic prescription process. Eligibility for the CMS ePrescribing Incentive program is determined at the NPI level, not the practice level.
NCPDP SCRIPT Standard
Data transaction standard maintained by NCPDP that supports ePrescribing transactions including new prescriptions, request and response for prescription renewals (refills), and prescription change requests.
Prior Authorization
The industry and NCPDP are working on a standard for automating the prior authorization process for prescription drugs. Once standardized, it is expected that electronic communication of prior authorization data will be implemented between ePrescribing systems and participating PBMs/health plans.
SIG
Coded instructions used by physicians for communicating medication usage to pharmacists. Shortened from the Latin word "signatura" or "signa." A standard Structured and Codified SIG transaction format is being developed by NCPDP.
Stand-alone electronic prescribing system
Software used to send and receive electronic prescriptions. ePrescribing software is offered in two forms: (1) a software package acquired and downloaded to your office computer, or more commonly, (2) through the Internet, whereby users connect with an ePrescribing software application service provider (ASP).
Stand-alone ePrescribing software does not include an EMR component. It does, however, store and manage patient data specific to the prescribing process (e.g., medication history, medication allergies, patient's preferred pharmacy and physician's frequently prescribed therapies).
The level of access or authority assigned to a user of an ePrescribing or EMR system.
Certification Commission for Health Information Technology (CCHIT)
A recognized certification body for electronic health records and their networks, and an independent voluntary private-sector initiative. Their mission is to accelerate the adoption of health information technology by creating an efficient, credible and sustainable certification program.
Clinical decision support
Computer applications that link health knowledge data with patient-specific data and are designed to assist physicians and other health professionals with decision-making tasks.
Electronic signature
An electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
Favorites list
A feature included in most ePrescribing systems that allows the prescriber to create custom shortcut lists of frequently prescribed medications and frequently used SIGs. For the prescriber, time spent upfront in creating these lists is well spent as they greatly facilitate the prescribing process and impact prescriber satisfaction with ePrescribing.
Medicare Modernization Act of 2003 (MMA)
The law that authorized the Medicare Part D drug program. Even though the act applies to a single federal program, it is likely to drive transaction practices in almost all of healthcare.
Doctors are not required by the act to prescribe electronically. However, the Medicare Modernization Act regulations do require that after 2009, physicians and pharmacies that prescribe electronically for Medicare Part D beneficiaries must utilize the final standards for transactions approved by the Center for Medicare and Medicaid Services (CMS).
According to regulations, health plans (Part D sponsors) are required to establish and maintain after 2009 an electronic prescription drug program that complies with transaction standards adopted by CMS.
Medicare Improvements for Patients and Providers Act of 2008 (MIPPA)
The law that authorized the creation of the Medicare Electronic Prescribing Incentive Program.
The incentive program provides for an incentive payment to eligible professionals who successfully ePrescribe medications in 2009 and 2010 equal to 2 percent of their total Medicare payments for the year. The incentive amount is reduced to 1 percent in 2011 and 2012 and is finally reduced to 0.5 percent in 2013.
Penalties for physicians who do not adopt ePrescribing systems begin at 1 percent in 2012 and increase to 2 percent by 2014.
National Provider ID (NPI)
A unique identifier used by CMS to identify an individual health care provider to Medicare Part D sponsors, prescribers and dispensers, in electronically transmitted prescriptions or prescription-related materials for Medicare Part D covered drugs and Medicare Part D eligible individuals.
It is important to note that the NPI is used to identify the individual prescriber and dispenser in the electronic prescription process. Eligibility for the CMS ePrescribing Incentive program is determined at the NPI level, not the practice level.
NCPDP SCRIPT Standard
Data transaction standard maintained by NCPDP that supports ePrescribing transactions including new prescriptions, request and response for prescription renewals (refills), and prescription change requests.
Prior Authorization
The industry and NCPDP are working on a standard for automating the prior authorization process for prescription drugs. Once standardized, it is expected that electronic communication of prior authorization data will be implemented between ePrescribing systems and participating PBMs/health plans.
SIG
Coded instructions used by physicians for communicating medication usage to pharmacists. Shortened from the Latin word "signatura" or "signa." A standard Structured and Codified SIG transaction format is being developed by NCPDP.
Stand-alone electronic prescribing system
Software used to send and receive electronic prescriptions. ePrescribing software is offered in two forms: (1) a software package acquired and downloaded to your office computer, or more commonly, (2) through the Internet, whereby users connect with an ePrescribing software application service provider (ASP).
Stand-alone ePrescribing software does not include an EMR component. It does, however, store and manage patient data specific to the prescribing process (e.g., medication history, medication allergies, patient's preferred pharmacy and physician's frequently prescribed therapies).
