C.F.R. » Title 42 » CHAPTER IV—CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES › SUBCHAPTER G—STANDARDS AND CERTIFICATION › PART 495—STANDARDS FOR THE ELECTRONIC HEALTH RECORD TECHNOLOGY INCENTIVE PROGRAM › Subpart A—General Provisions

42 C.F.R. § 495.2

Basis and purpose

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This part implements the following:

(a) Section 1848(o) of the Act by establishing payment incentives under Medicare Part B for eligible professionals who adopt and meaningfully use certified electronic health record (EHR) technology.

(b) Section 1853(1) of the Act to provide incentive payments to Medicare Advantage organizations for certain affiliated professionals who meaningfully use certified EHR technology and meet certain other requirements.

(c) Section 1886(n) of the Act by establishing incentives payments for the meaningful use of certified EHR technology by subsection (d) hospitals, as defined under section 1886(d)(1)(B) of the Act, participating in the Medicare FFS program.

(d) Section 1814(l) of the Act to provide an incentive payment to critical access hospitals that meaningfully use certified EHR technology based on the hospitals' reasonable costs.

(e) Section 1853(m) of the Act to provide incentive payments to MA organizations for certain affiliated hospitals that meaningfully use certified EHR technology.

(f) Sections 1903(a)(3)(F) and 1903(t) of the Act to provide 100 percent Federal financial participation (FFP) to States for incentive payments to certain eligible providers participating in the Medicaid program to purchase, implement, and operate (including support services and training for staff) certified EHR technology and 90 percent FFP for State administrative expenses related to such incentive payments.

(g) Sections 1848(a)(7), 1853(l)(4), 1886(b)(3)(B)(ix)(I), and 1853(m)(4) of the Act, providing for payment reductions for inpatient services furnished on or after October 1, 2014 to Medicare beneficiaries by hospitals that are not meaningful users of certified EHR technology, and for covered professional services furnished on or after January 1, 2015 to Medicare beneficiaries by certain professionals who are not meaningful users of certified EHR technology.

Notes of Decisions
Cited in 16 cases (14 in the last 5 years), 2016–2025 · leading case: United States Ex Rel. Sheldon v. Kettering Health Network, 816 F.3d 399 (6th Cir. 2016).
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United States Ex Rel. Sheldon v. Kettering Health Network, 816 F.3d 399 (6th Cir. 2016). “42 C.F.R. § 495.2 ; see also 42 U.S.C. §§ 1395w-4(o), 1395ww(n) (establishing diminishing schedule for incentive payments to encourage early adoption by eligible professionals and hospitals).”
Doe I v. Upmc (W.D. Pa. 2020). · cites it 2× “§§ 1395w-4(o), 1395ww(n); 42 C.F.R. § 495.2 . Under this program, eligible healthcare providers receive incentive payments from DHHS if they demonstrate “meaningful use” of certified EHR technology.”
Permenter v. Eclinical Works LLC (M.D. Ga. 2025). · cites it 2× “216-2 ¶¶ 104-105; 266-1 ¶¶ 104-105; see also 42 C.F.R. § 495.2 . Healthcare providers who adopted CEHRT and demonstrated meaningful use were eligible for financial incentives.”
Horton v. Willis-Knighton Med. Ctr (5th Cir. 2024). “42 C.F.R. § 495.2 (g). On account of the HITECH Act, Willis-Knighton argues that they were acting pursuant to a directive from the federal government to make patient records available online.”
Kelly Davis v. Hoag Mem'l Hosp. Presbyterian (C.D. Cal. 2023). “¶ 23 [citing 42 C.F.R. §§ 495.2 (f)(12)(i)(B)].) As part of that program, the 21 federal government gives incentive payments to healthcare providers who promote 22 patient engagement through the “meaningful use of certified [electronic health record] 23 technology.”
Michelle Valladolid v. Mem'l Health Servs. (C.D. Cal. 2023). “§§ 1395w-4(o), 1395ww(n); 42 C.F.R. § 495.2 . In order to receive payment, providers must attest to the National Coordinator and CMS on their progress with respect to the criteria for payment, including their patients’ engagement with their online records.”
Cousin v. Sharp Healthcare (S.D. Cal. 2024). “See 42 CFR § 495.2 . 15 In the Notices of Removal, Sharp relied on two out-of-circuit cases, which the 16 Court addressed in the OSC, noting that they were unpersuasive in light of the 17 overwhelming in-circuit jurisprudence.”
Barbat v. Sharp Healthcare (S.D. Cal. 2024). “See 42 CFR § 495.2 . 15 In the Notices of Removal, Sharp relied on two out-of-circuit cases, which the 16 Court addressed in the OSC, noting that they were unpersuasive in light of the 17 overwhelming in-circuit jurisprudence.”
Camus v. Sharp Healthcare (S.D. Cal. 2024). “See 42 CFR § 495.2 . 15 In the Notices of Removal, Sharp relied on two out-of-circuit cases, which the 16 Court addressed in the OSC, noting that they were unpersuasive in light of the 17 overwhelming in-circuit jurisprudence.”
Doe v. Atrius Health, Inc. (D. Mass. 2023). “” 42 C.F.R. § 495.2 (a). Over the years, the federal government has incorporated the goals of the Meaningful Use program into a series of other initiatives, including the Merit-Based Incentive Payment System (“MIPS”), and the Primary Care First program.”
Doe v. Atrius Health, Inc. (D. Mass. 2023). “” 42 C.F.R. § 495.2 (a). Over the years, the federal government has incorporated the goals of the Meaningful Use program into a series of other initiatives, including the Merit-Based Incentive Payment System (“MIPS”), and the Primary Care First program.”
Doe v. The Christ Hosp. (S.D. Ohio 2023). “§§ 1395w-4(o), 1395ww(n); 42 C.F.R. § 495.2 . The National Coordinator issued guidance recommending that patient information portals be “engaging and user friendly” to increase usage.”
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