The CMS has begun notifying Medicare participating physicians of their Medicare penalty status for failing to meet Medicare Electronic Prescribing Incentive Program requirements in 2012. Physicians can request a review of their status or seek a hardship exemption. The noncompliance penalty is a 1.5% Medicare pay cut in 2013, and nonparticipation in 2013 will result in a 2% pay cut in 2014.

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