The American Recovery and Reinvestment Act of 2009 (ARRA) requires Medicare providers that are not meaningful users of electronic health records (EHR) to start by taking a 1% pay cut as of January 1, 2015.  The payment adjustments will continue at 1% for every year if the provider is not a meaningful provider (maxing at 5%).

You still have time, however, to avoid the 1% reduction for 2015.  Medicare providers must demonstrate meaningful use for a 3 month period during the first 9 months of 2014 (you must report this data no later than October 1, 2014).

Medicare does give you the option to file for a hardship exemption to avoid the payments is you meet certainly criteria.

For complete details on meaningful use requirements read Medicare’s Payment Adjustments & Hardship Exceptions Tipshet for Eligible Professionals (March 2014).

Also, you can find detailed information on how to register for the EHR Incentive Program online.