Prescribers now have the ability to request Medicaid medication history through their e-prescribing tool, as long as the prescriber has client consent and the client allows Medicaid to share their history. Providers also can transmit electronic prescriptions to pharmacies capable of receiving electronic prescriptions. E-prescribing not only replaces paper prescriptions with electronic prescriptions, but also includes the electronic exchange of prescription, drug formulary, client benefit, and patient information among prescribers, pharmacies, and payers.  

The American Recovery and Reinvestment Act of 2009 allows for the payment of federal incentives to Medicaid and Medicare providers for the adoption and meaningful use of electronic health record (EHR) technology. The use of e-prescribing is included as meaningful use criteria.  Therefore, providers that are eligible to receive the incentives must utilize e-prescribing capabilities within a certified EHR. Under federal law, providers that adopt EHR technology can apply for incentive payments beginning in federal fiscal years 2011 through 2016.