Electronic prescribing or e-prescribing refers to the practice of a doctor writing a prescription from a computer or wireless device and sending that prescription directly to a pharmacy. The practice is cost effective because it reduces the need for an office visit every time a prescription is needed. It is important to note that e-prescribing is not meant to replace doctor's visits, but can help patients get their prescriptions faster. An incentive program, known as the eRx Incentive Program, providing a 2.0% incentive payment for qualified medical professionals signing up for the program. Sign up or pre-registration is not required. However, qualifications for the program include:

• Use of a qualified eRx system
• Report adoption of eRx system
• Meet criteria specified by CMS (Centers for Medicare and Medicaid Services) for a specified reporting period
• Use of codes to denote use of the eRx system to fill a Medicare Part B subscriber's prescription

The electronic prescribing incentive program was initiated in 2009 to encourage physicians to use the new program. Starting in 2010, group practices became eligible for the incentive program. In order to be eligible for payment as part of the incentive program, medical professionals must report the eRx measure in at least 50% of the cases where the eRX system is reportable by the eligible medical practices.

How e-Prescribing works

Similar programs exist in Europe. In the United States, the National Council for Prescription Drug Programs provides guidelines for the e-prescribing program. Prescriptions are generally ordered via an eRX system while a patient is in the waiting room or exam room.

When a doctor/prescriber logs into the system, they are required to present two forms of three common authentications. These are:

• Password
• Fingerprint, retinal scan, or other biometric identification
• Magnetic card or physical security token

A patient's information is then located in the system. This includes a designated pharmacy where the prescription will be filled. A drug is then selected and strength, quantity and directions are entered. A patient's active information (allergic reactions, medications currently prescribed, etc.) is displayed. The system may suggest alternative drugs that may be more effective or less expensive or alert the doctor if the patient is allergic or if medications conflict, etc. The order is then sent via an encrypted connection to the pharmacy. The order appears on the pharmacy's computer, filled and picked up by the patient.