Administrative Simplification News: EFT/ERA Options for Providers to Receive Payments

Electronic Funds Transfer: What Providers Need to Know With Administrative Simplification operating rules in place, the Centers for Medicare & Medicaid Services (CMS) encourages providers to consider their option to receive electronic funds transfer (EFT) payments through the Automated Clearing House (ACH) Network. The ACH Network is the standard format for EFT and electronic remittance advice (ERA) transactions. This standard format allows providers to fill out a single enrollment form for participation in EFT and ERA across different health plans. As of January 1, 2014, health plans are required to comply with provider requests to use the ACH Network to conduct EFT and ERA transactions. Providers need to know that health plans may not: Delay or reject an EFT or ERA transaction because it is a standard Charge an excessive fee or otherwise give providers incentives to use an alternative payment method to EFT via the ACH Network Providers who choose not to use the ACH Network may continue to receive payments by check, Fedwire, and other payment networks. For any payment method, CMS recommends that providers carefully review the agreements for any added fees. To find out more about operating rules and EFT and ERA, see the: Newly posted FAQ 9778 on www.cms.gov The Administrative Simplification Online Guide available as part of the CMS eHealth University Administrative Simplification resources from the American Medical Association, including theElectronic Funds Transfer Toolkit and Electronic Remittance Advice Toolkit Subscriber Services: Manage Preferences | Unsubscribe

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