The carrot isn't gone yet. In 2011 your bonus is 1%. In 2012 the stick comes out, with a 1% penalty, which increases to 1.5% in 2013 and 2% in 2014.
As Steven points out, there is a confusing "Catch-22" with the incentives. If anyone knows the solution to this, please speak up. I will try to outline the issue without droning on too long:
1. The eRx incentive turns into a penalty in 2012. The penalty is determined by whether or not you use eprescribing in 2011. You must use it and report the code (G8553) in the first half of 2011 to avoid penalties in 2012-15.
2. The biggest portion of the meaningful use incentives is earned in 2011. You apply for this as you go through the year in 2011.
3. You cannot get both of these payments; if you get the eRx incentive, you cannot get MU, and vice versa.
So....if you use the G codes in early 2011 to avoid the penalties in subsequent years, do you eliminate your chance of getting the (much larger) meaningful use incentive? Or are you better off NOT using the eRx codes, taking the penalties over the years, but getting the MU incentive? It appears that we must make a choice.
