100 Second Avenue South, Suite 600, St. Petersburg, Florida 33701 | (727) 821-6161 | www.gsscpa.com

▲ Provide a Taxpayer Identification Number to whichpaymentswillbeapplied

▲ SelecttoparticipateineithertheMedicareorMedicaidincentiveprogram

Attestation and paymentThe Centers for Medicare & Medicaid Services (CMS) will

notbeabletoreceivedatafromcertifiedEHRsin2011.Toreceiveanincentivepaymentthisyear,physiciansmustattestinwritingtousingacertifiedEHRandmeetingtheobjectivesassociatedwithmeaningfuluseforaconsecutive90-dayperiod.

Thosewhodonotstarttheprogramuntil2012orlaterwillneedtoshowmeaningfuluseforafullyear.Falseattestationcan lead to fraud charges. Under the Health InformationTechnology for Economic and Clinical Health (HITECH)Act,civilpenaltiescanrangefrom$250,000to$1.5million.

Physicianswhohaveregistered,attestedandbeenapprovedcanexpecttoreceivetheirMedicareincentivepaymentsoncetheyhavemet the$24,000 threshold for2011.Thepaymentwillbemadeelectronically to thebankaccountaphysiciancurrentlyuses forMedicareclaimpayments.Physicianscantrackthestatusoftheirincentivepaymentsonline.

Physician agreementsIncentivepaymentswillbe sent to individualphysicians,

nottothepractice.Theprogramallowseligibleproviderstoreassignincentivepaymentstotheiremployers.Butreassign-mentisnotrequiredeveniftheemployerboreallthecostsofpurchasingandimplementingEHRtechnology.

Additionally,aproviderwhoworksformultipleemployersmaychoosetoreassignpaymenttoonlyoneemployer.ARRAdoes not provide any guidance or criteria for determiningwhichoneshouldreceivepayment.

Asaresult,practicesthatexpecttorecoverincentivemoneyneedtobeclearonhowthepaymentsfortheirphysicianswillbehandled.Practicesshouldreviewand, ifnecessary,amendtheir provider contracts or develop an agreement specificallycoveringincentivepayments.

Tax implicationsAsthesayinggoes,“Thereisnosuchthingasafreelunch.”

Incentivepaymentswillbetaxedasincome.According to the Health and Human Services website,

nothinginthelawexcludessuchpaymentsfromtaxationorspecifiesthepaymentsastax-freeincome.Youshouldconsultyour tax adviser about how to report payments properly. –Irene E. Lombardo

Medicare ElectronicHealthRecordIncen-tive Program is onthe launching pad.Whether you chooseto jump on board ortake a wait-and-see

approach depends on your individualcircumstances.

Registrationfortheincentiveprogrambegan in January. Attestation begins inApril 2011, with the first of five annualpaymentstodoctorstobemadeinMay.

ForMedicaidproviders,incentiveswillbepaidbythestates.AllstatescouldhavebeguntheirprogramsinJanuary.However,manyhavechosen todelay their launchdates.

Whiletheincentivesmaynotcoverthecosts of purchasing and implementing acertified electronic health record (EHR)system, eligible providers who do notmeet meaningful use of EHRs by 2015face reduced Medicare payments underanAmericanRecoveryandReinvestmentAct (ARRA) penalty provision.Additionally, some insurers are linking

their pay-for-performance programs to the federal meaningful-usecriteria.

FortheMedicaidincentive,providershaveuntil2016tobegintheprogramandstillreceivethefullbonusof$63,750oversixyears.Othernotable differences between the Medicaid and Medicare incentiveprogramsincludeeligibilityandstate-imposedrequirements.

FormoredetailedinformationontheMedicaidincentiveprogram,visit www.cms.gov/ehrincentiveprograms and your state healthdepartment.

Physicianschoosingtoparticipatein the Medicare incentive programwho want to receive the maximumbenefit–upto$44,000paidoutoverfiveyears–mustinitiateparticipationthis year or no later than 2012. Themaximum amount of the incentivepayment is reduced with each suc-ceedingyear,and2014isthelastyeara physician can begin to qualify fortheMedicareincentiveprogram.

Theamountoftheannualpaymentistiedtochargesbilled.Toreceivethe$18,000availabletothosestartingthisyear or next, a physician must bill atleast $24,000 in Medicare-allowedcharges.Alleligiblephysiciansinapracticecanapplyfortheincentive,providedeachphysicianindividuallymeetsthemeaningfulEHRusecriteriaandbillingthreshold.

Registration requirementsThose seeking the stimulus money must register on the EHR

Incentive Program website at www.cms.gov/ehrincentiveprograms.Toregister,eligiblephysiciansmust:

▲ HaveaNationalProviderIdentifier▲ BeenrolledintheInternet-basedProviderEnrollment,Chain

andOwnershipSystem▲ UsecertifiedEHRtechnology

See Incentive program on back

I n s i d e

I n s i d e

Spring 2011➜Retirement plan is a crucial

part of tax planning

➜Physicians can take advantage of new tax breaks

Countdown is on to apply for incentive program

Physicians choosing to participate in the Medicare

incentive program who want to receive the maximum

benefit must initiate participation this year – or

no later than 2012.

Incentive program continued from front

3...2...1...

A financial and management bulletin to physicians and medical practices from:

The technical information in this newsletter is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the information contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS. © 2011 CPAmerica International

Your Healthy Practice

Probablythemostsignificanttaxplanningtoolavailabletophysiciansandothermedicalprofessionals is thequalifiedretirementplan.

Theopportunitytoputasidemoneythathasnotbeentaxedandinvestthosesavingsinatax-deferredmannercangoalongwaytowardprovidingacomfortableretirementforyouandtheotheremployeesinyourmedicalpractice.

Youcanchooseamonganarrayofretirementsavingsplansauthorizedby the tax law, collectivelydescribedas “qualifiedretirement plans.” While the technical requirements vary, allqualifiedplansoffertwocommonbenefits:

1. Moniescontributedtotheplanarenottaxedcurrently.2. Earnings generated by plan investments are not taxed

untildistributed.Ifyou’reanemployeeofyourmedicalpractice,yourplan

must satisfya formidable listof requirements,which reflecttwounderlyingpolicyobjectives:

1.The plan should carry minimum risk for participatingemployees.Tomeetthisobjective,thelawrequiresthat:

▲ Plansbewritten,permanentarrangementsadministeredintrustformbyanindependenttrustee

▲ Plansbefundedbyemployerstransferringcashorothervaluablepropertytothetrust

▲ Employees have a nonforfeitable (vested) right to 100percentoftheirretirementbenefitsafternomorethansevenyearsofservicewiththeemployer

2.Theplanshouldprovideequitablebenefitstoallpartici-patingemployees.Accordingly,ifyouaren’ttheonlyemployeeofyourmedicalpractice, theothersmust receivecomparablebenefitsundertheplan.

Defined benefit pension plansWithapensionplan,employersmakeannualtax-deductible

contributions based on the actuarially determined cost offutureretirementbenefits.Asaresult,yourmedicalpracticemay be required to make contributions in a year in which it

operatesatalossorexperiencescashflowdifficulties.Also,ifthe plan suffers investment setbacks, you may have to makehighercontributionstofundthepromisedretirementbenefits.

However,ifyourpracticehasonlyafewemployees,estab-lishingapensionplancanbeagoodwaytoputawaysubstantialcashforyourfutureretirement.

Theannualpensionamountislimitedtothelesserof100percent of the retiree’s average compensation for his or herthree highest compensation years or an inflation-adjustedbaseamount($195,000for2011).

Defined contribution plansWith a defined contribution plan, the trust maintains a

separateaccountforeachemployee.Eachyear,theemployercontributes a specified amount to each account. The yearlycontributionforeachemployeeislimitedtothelesserof100percentofannualcompensationoraninflation-adjustedbaseamount ($49,000 in 2011). The employer’s tax deduction isgenerallylimitedto25percentofcompensationexpense.

Definedcontributionplansmaytakeseveralforms.Profit-sharing plans are those under which employers

contribute a percentage of current earnings to a retirementtrust.Employershavenoobligationtocontributeinlossyears.

Section401(k)plansarealsodescribedassalaryreductionplans or cash-or-deferred plans. Under these plans, eachemployeedefineshisorherowncontributionbyauthorizingthe employer to divert some amount of current salary intoretirementsavings.In2011,themaximumcompensationthatmost employees can contribute to a 401(k) plan is $16,500.Employeesage50andovercancontributeupto$22,000.

Physicians can take advantage of new tax breaksDecember’s passage of the Tax Relief, Unemployment

Insurance Reauthorization and Job Creation Act of 2010,extending theBush taxcuts,and theSmallBusiness JobsAct signed into law last September offer some significanttaxbreaks,beginningwiththe2010taxyear.

ExpensingAjobsactprovisionincreasestheexpensingdeduction

limit(Section179ofthetaxcode)forbusinessequipmentpurchased and placed into service during 2010 and 2011.Practices can deduct up to $500,000 worth of qualifiedpurchases, such as new or used electronic equipment,furnitureandfixtures.Thisdeductiondoublestheimmediatewrite-offthatwouldhaveappliedin2010andincreasestheamount from$25,000to$500,000for2011.Thetaxreliefactincreasesexpensinglimitsfrom$25,000to$125,000for2012.

In addition, for the first time, qualified real property,includingleaseholdimprovementproperty,canbeexpensedupto$250,000ofthetotal$500,000.So,physiciansleasingspace may take an immediate deduction on expensesrelatedtoremodelingofficesduring2010.Theruleappliesforqualifiedrealpropertyplacedinserviceduring2010or2011.

Whethertotakeanimmediatedeductionortospreadthecostofqualifiedpurchasesoverseveralyearsdependsonyourspecificsituation.Whileacceleratingdeductionscanloweryourtaxbitein2010and2011,spreadingwrite-offscouldhavetaxadvantagesshouldfuturetaxratesrisesignificantly. Therefore, it is important to discuss withyourtaxadviserwhichstrategyworksbestforyou.

Depreciation rules“Bonusdepreciation,”whichexpiredattheendof2009,

wasextendedwithanadditionalplus.Taxpayerscandeduct50 percent of the cost of qualified property – generally,furniture, fixtures and equipment – placed in service

betweenJan.1,2010,andDec.31,2010.Inaddition,anewprovisionallowstaxpayerstodeduct100percentofqualifiedpropertyplacedinserviceafterSept.8,2010,andbeforeJan.1,2012.

First-yeardepreciation deduction limits forpassengerautomobilesalsowereincreased.Physicians can deduct $11,060for new passenger vehiclesacquiredandplacedintoservicein2010.

Practices planning to addfixed assets should discuss thetax opportunities available thisyearwiththeirtaxadvisers.

Other provisionsSomeIRSruleswereloosened

bythejobsact.Forexample,theactremovescellphonesfromthedefinition of listed propertybeginning with the 2010 taxyear. This means physicians nolonger have to pay taxes on limited personal use of cellphonesprovidedbythepractice.

To increase federalrevenues, theact includessomenewreporting requirements. Those who receive rental incomefromrealpropertymustreporttotheIRSanypaymentsof$600ormorethataremadetoserviceprovidersinconnec-tionwiththepropertybeginningwith2011.PenaltieswereincreasedsignificantlyforfailuretofilerequiredinformationreturnstopayeesandtotheIRSinatimelymanner.

A similar provision in the healthcare act requiresemployers,beginningin2012,tocompletea1099taxformwhenevertheyspend$600ongoodsandservices,includingpaymentstocorporations.

Formoreinformationontheimpactofthetaxreliefandjobsacts,consultyourtaxadviser.–Irene E. Lombardo

See Retirement plan on page 3

is a of tax planning

planRetirement

crucial part

A safe-harbor 401(k) plan is not subject to the complexannual nondiscrimination tests that apply to traditional401(k)plans.Itmustprovideforemployercontributionsthatare fully vested when made. These contributions may beemployermatchingcontributions, limitedtoemployeeswhodefer,oremployercontributionsmadeonbehalfofalleligibleemployees,regardlessofwhethertheymakeelectivedeferrals.Simplified employee pensions

The simplified employee pension (SEP) plan is arguablythe easiest retirement plan for a small business to put intopractice.Theplanrequiresverylittlepaperwork,isextremelyflexibleanddoesnotrequiretheapprovaloftheIRS.

SEPsworkverymuchlikeindividualretirementaccountsbutwithhighercontributionlimits.Employerscancontributeuptothelesserof25percentofannualcompensationoraninflation-adjustedamount($49,000in2011)intothistypeofplan.

Qualified plans for the self-employedSelf-employedindividuals,includingpartnersinamedical

partnership,canmakeannualpaymentstoaKeoghplan.Keoghplans can be either defined benefit or defined contributionplans.

IndividualswhoowndefinedcontributionKeoghplanscaninvestthelesserof100percentofself-employmentincomeoraninflation-adjustedbaseamount($49,000in2011)eachyear.

If a self-employed person with a Keogh plan hires anemployee, the employee must be provided with a qualifiedretirementplanwithbenefitssimilartothoseavailabletotheself-employedindividualundertheKeoghplan.

✸ ✸ ✸Visityourtaxadvisertodiscusshowqualifiedretirement

plans can offer significant tax advantages to both you andyouremployees.–Michael Redemske, CPA

Retirement plan continued from page 2

Spring 2011 Your Healthy Practice2 Spring 2011 Your Healthy Practice 3

Probablythemostsignificanttaxplanningtoolavailabletophysiciansandothermedicalprofessionals is thequalifiedretirementplan.

Theopportunitytoputasidemoneythathasnotbeentaxedandinvestthosesavingsinatax-deferredmannercangoalongwaytowardprovidingacomfortableretirementforyouandtheotheremployeesinyourmedicalpractice.

Youcanchooseamonganarrayofretirementsavingsplansauthorizedby the tax law, collectivelydescribedas “qualifiedretirement plans.” While the technical requirements vary, allqualifiedplansoffertwocommonbenefits:

1. Moniescontributedtotheplanarenottaxedcurrently.2. Earnings generated by plan investments are not taxed

untildistributed.Ifyou’reanemployeeofyourmedicalpractice,yourplan

must satisfya formidable listof requirements,which reflecttwounderlyingpolicyobjectives:

1.The plan should carry minimum risk for participatingemployees.Tomeetthisobjective,thelawrequiresthat:

▲ Plansbewritten,permanentarrangementsadministeredintrustformbyanindependenttrustee

▲ Plansbefundedbyemployerstransferringcashorothervaluablepropertytothetrust

▲ Employees have a nonforfeitable (vested) right to 100percentoftheirretirementbenefitsafternomorethansevenyearsofservicewiththeemployer

2.Theplanshouldprovideequitablebenefitstoallpartici-patingemployees.Accordingly,ifyouaren’ttheonlyemployeeofyourmedicalpractice, theothersmust receivecomparablebenefitsundertheplan.

Defined benefit pension plansWithapensionplan,employersmakeannualtax-deductible

contributions based on the actuarially determined cost offutureretirementbenefits.Asaresult,yourmedicalpracticemay be required to make contributions in a year in which it

operatesatalossorexperiencescashflowdifficulties.Also,ifthe plan suffers investment setbacks, you may have to makehighercontributionstofundthepromisedretirementbenefits.

However,ifyourpracticehasonlyafewemployees,estab-lishingapensionplancanbeagoodwaytoputawaysubstantialcashforyourfutureretirement.

Theannualpensionamountislimitedtothelesserof100percent of the retiree’s average compensation for his or herthree highest compensation years or an inflation-adjustedbaseamount($195,000for2011).

Defined contribution plansWith a defined contribution plan, the trust maintains a

separateaccountforeachemployee.Eachyear,theemployercontributes a specified amount to each account. The yearlycontributionforeachemployeeislimitedtothelesserof100percentofannualcompensationoraninflation-adjustedbaseamount ($49,000 in 2011). The employer’s tax deduction isgenerallylimitedto25percentofcompensationexpense.

Definedcontributionplansmaytakeseveralforms.Profit-sharing plans are those under which employers

contribute a percentage of current earnings to a retirementtrust.Employershavenoobligationtocontributeinlossyears.

Section401(k)plansarealsodescribedassalaryreductionplans or cash-or-deferred plans. Under these plans, eachemployeedefineshisorherowncontributionbyauthorizingthe employer to divert some amount of current salary intoretirementsavings.In2011,themaximumcompensationthatmost employees can contribute to a 401(k) plan is $16,500.Employeesage50andovercancontributeupto$22,000.

Physicians can take advantage of new tax breaksDecember’s passage of the Tax Relief, Unemployment

Insurance Reauthorization and Job Creation Act of 2010,extending theBush taxcuts,and theSmallBusiness JobsAct signed into law last September offer some significanttaxbreaks,beginningwiththe2010taxyear.

ExpensingAjobsactprovisionincreasestheexpensingdeduction

limit(Section179ofthetaxcode)forbusinessequipmentpurchased and placed into service during 2010 and 2011.Practices can deduct up to $500,000 worth of qualifiedpurchases, such as new or used electronic equipment,furnitureandfixtures.Thisdeductiondoublestheimmediatewrite-offthatwouldhaveappliedin2010andincreasestheamount from$25,000to$500,000for2011.Thetaxreliefactincreasesexpensinglimitsfrom$25,000to$125,000for2012.

In addition, for the first time, qualified real property,includingleaseholdimprovementproperty,canbeexpensedupto$250,000ofthetotal$500,000.So,physiciansleasingspace may take an immediate deduction on expensesrelatedtoremodelingofficesduring2010.Theruleappliesforqualifiedrealpropertyplacedinserviceduring2010or2011.

Whethertotakeanimmediatedeductionortospreadthecostofqualifiedpurchasesoverseveralyearsdependsonyourspecificsituation.Whileacceleratingdeductionscanloweryourtaxbitein2010and2011,spreadingwrite-offscouldhavetaxadvantagesshouldfuturetaxratesrisesignificantly. Therefore, it is important to discuss withyourtaxadviserwhichstrategyworksbestforyou.

Depreciation rules“Bonusdepreciation,”whichexpiredattheendof2009,

wasextendedwithanadditionalplus.Taxpayerscandeduct50 percent of the cost of qualified property – generally,furniture, fixtures and equipment – placed in service

betweenJan.1,2010,andDec.31,2010.Inaddition,anewprovisionallowstaxpayerstodeduct100percentofqualifiedpropertyplacedinserviceafterSept.8,2010,andbeforeJan.1,2012.

First-yeardepreciation deduction limits forpassengerautomobilesalsowereincreased.Physicians can deduct $11,060for new passenger vehiclesacquiredandplacedintoservicein2010.

Practices planning to addfixed assets should discuss thetax opportunities available thisyearwiththeirtaxadvisers.

Other provisionsSomeIRSruleswereloosened

bythejobsact.Forexample,theactremovescellphonesfromthedefinition of listed propertybeginning with the 2010 taxyear. This means physicians nolonger have to pay taxes on limited personal use of cellphonesprovidedbythepractice.

To increase federalrevenues, theact includessomenewreporting requirements. Those who receive rental incomefromrealpropertymustreporttotheIRSanypaymentsof$600ormorethataremadetoserviceprovidersinconnec-tionwiththepropertybeginningwith2011.PenaltieswereincreasedsignificantlyforfailuretofilerequiredinformationreturnstopayeesandtotheIRSinatimelymanner.

A similar provision in the healthcare act requiresemployers,beginningin2012,tocompletea1099taxformwhenevertheyspend$600ongoodsandservices,includingpaymentstocorporations.

Formoreinformationontheimpactofthetaxreliefandjobsacts,consultyourtaxadviser.–Irene E. Lombardo

See Retirement plan on page 3

is a of tax planning

planRetirement

crucial part

A safe-harbor 401(k) plan is not subject to the complexannual nondiscrimination tests that apply to traditional401(k)plans.Itmustprovideforemployercontributionsthatare fully vested when made. These contributions may beemployermatchingcontributions, limitedtoemployeeswhodefer,oremployercontributionsmadeonbehalfofalleligibleemployees,regardlessofwhethertheymakeelectivedeferrals.Simplified employee pensions

The simplified employee pension (SEP) plan is arguablythe easiest retirement plan for a small business to put intopractice.Theplanrequiresverylittlepaperwork,isextremelyflexibleanddoesnotrequiretheapprovaloftheIRS.

SEPsworkverymuchlikeindividualretirementaccountsbutwithhighercontributionlimits.Employerscancontributeuptothelesserof25percentofannualcompensationoraninflation-adjustedamount($49,000in2011)intothistypeofplan.

Qualified plans for the self-employedSelf-employedindividuals,includingpartnersinamedical

partnership,canmakeannualpaymentstoaKeoghplan.Keoghplans can be either defined benefit or defined contributionplans.

IndividualswhoowndefinedcontributionKeoghplanscaninvestthelesserof100percentofself-employmentincomeoraninflation-adjustedbaseamount($49,000in2011)eachyear.

If a self-employed person with a Keogh plan hires anemployee, the employee must be provided with a qualifiedretirementplanwithbenefitssimilartothoseavailabletotheself-employedindividualundertheKeoghplan.

✸ ✸ ✸Visityourtaxadvisertodiscusshowqualifiedretirement

plans can offer significant tax advantages to both you andyouremployees.–Michael Redemske, CPA

Retirement plan continued from page 2

Spring 2011 Your Healthy Practice2 Spring 2011 Your Healthy Practice 3

100 Second Avenue South, Suite 600, St. Petersburg, Florida 33701 www.gsscpa.com | gss@gsscpa.com

(727) 821-6161If we may answer any of your questions on the information contained in this

publication, please contact us.

▲ Provide a Taxpayer Identification Number to whichpaymentswillbeapplied

▲ SelecttoparticipateineithertheMedicareorMedicaidincentiveprogram

Attestation and paymentThe Centers for Medicare & Medicaid Services (CMS) will

notbeabletoreceivedatafromcertifiedEHRsin2011.Toreceiveanincentivepaymentthisyear,physiciansmustattestinwritingtousingacertifiedEHRandmeetingtheobjectivesassociatedwithmeaningfuluseforaconsecutive90-dayperiod.

Thosewhodonotstarttheprogramuntil2012orlaterwillneedtoshowmeaningfuluseforafullyear.Falseattestationcan lead to fraud charges. Under the Health InformationTechnology for Economic and Clinical Health (HITECH)Act,civilpenaltiescanrangefrom$250,000to$1.5million.

Physicianswhohaveregistered,attestedandbeenapprovedcanexpecttoreceivetheirMedicareincentivepaymentsoncetheyhavemet the$24,000 threshold for2011.Thepaymentwillbemadeelectronically to thebankaccountaphysiciancurrentlyuses forMedicareclaimpayments.Physicianscantrackthestatusoftheirincentivepaymentsonline.

Physician agreementsIncentivepaymentswillbe sent to individualphysicians,

nottothepractice.Theprogramallowseligibleproviderstoreassignincentivepaymentstotheiremployers.Butreassign-mentisnotrequiredeveniftheemployerboreallthecostsofpurchasingandimplementingEHRtechnology.

Additionally,aproviderwhoworksformultipleemployersmaychoosetoreassignpaymenttoonlyoneemployer.ARRAdoes not provide any guidance or criteria for determiningwhichoneshouldreceivepayment.

Asaresult,practicesthatexpecttorecoverincentivemoneyneedtobeclearonhowthepaymentsfortheirphysicianswillbehandled.Practicesshouldreviewand, ifnecessary,amendtheir provider contracts or develop an agreement specificallycoveringincentivepayments.

Tax implicationsAsthesayinggoes,“Thereisnosuchthingasafreelunch.”

Incentivepaymentswillbetaxedasincome.According to the Health and Human Services website,

nothinginthelawexcludessuchpaymentsfromtaxationorspecifiesthepaymentsastax-freeincome.Youshouldconsultyour tax adviser about how to report payments properly. –Irene E. Lombardo

Medicare ElectronicHealthRecordIncen-tive Program is onthe launching pad.Whether you chooseto jump on board ortake a wait-and-see

approach depends on your individualcircumstances.

Registrationfortheincentiveprogrambegan in January. Attestation begins inApril 2011, with the first of five annualpaymentstodoctorstobemadeinMay.

ForMedicaidproviders,incentiveswillbepaidbythestates.AllstatescouldhavebeguntheirprogramsinJanuary.However,manyhavechosen todelay their launchdates.

Whiletheincentivesmaynotcoverthecosts of purchasing and implementing acertified electronic health record (EHR)system, eligible providers who do notmeet meaningful use of EHRs by 2015face reduced Medicare payments underanAmericanRecoveryandReinvestmentAct (ARRA) penalty provision.Additionally, some insurers are linking

their pay-for-performance programs to the federal meaningful-usecriteria.

FortheMedicaidincentive,providershaveuntil2016tobegintheprogramandstillreceivethefullbonusof$63,750oversixyears.Othernotable differences between the Medicaid and Medicare incentiveprogramsincludeeligibilityandstate-imposedrequirements.

FormoredetailedinformationontheMedicaidincentiveprogram,visit www.cms.gov/ehrincentiveprograms and your state healthdepartment.

Physicianschoosingtoparticipatein the Medicare incentive programwho want to receive the maximumbenefit–upto$44,000paidoutoverfiveyears–mustinitiateparticipationthis year or no later than 2012. Themaximum amount of the incentivepayment is reduced with each suc-ceedingyear,and2014isthelastyeara physician can begin to qualify fortheMedicareincentiveprogram.

Theamountoftheannualpaymentistiedtochargesbilled.Toreceivethe$18,000availabletothosestartingthisyear or next, a physician must bill atleast $24,000 in Medicare-allowedcharges.Alleligiblephysiciansinapracticecanapplyfortheincentive,providedeachphysicianindividuallymeetsthemeaningfulEHRusecriteriaandbillingthreshold.

Registration requirementsThose seeking the stimulus money must register on the EHR

Incentive Program website at www.cms.gov/ehrincentiveprograms.Toregister,eligiblephysiciansmust:

▲ HaveaNationalProviderIdentifier▲ BeenrolledintheInternet-basedProviderEnrollment,Chain

andOwnershipSystem▲ UsecertifiedEHRtechnology

See Incentive program on back

I n s i d e

I n s i d e

Spring 2011➜Retirement plan is a crucial

part of tax planning

➜Physicians can take advantage of new tax breaks

Countdown is on to apply for incentive program

Physicians choosing to participate in the Medicare

incentive program who want to receive the maximum

benefit must initiate participation this year – or

no later than 2012.

Incentive program continued from front

3...2...1...

A financial and management bulletin to physicians and medical practices from:

The technical information in this newsletter is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the information contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS. © 2011 CPAmerica International

Your Healthy Practice