CMS Finalizes New Regulation to Standardize Electronic Funds Transfer (EFT)
The Centers for Medicare & Medicaid Services (CMS) announced that the interim final rule that adopts healthcare electronic funds transfer (EFT) standards is now a final rule currently in effect. According to CMS, the standards for EFT could reduce administrative costs for physician practices and others by up to $4.5 billion over the next ten years. The rule is the second in a series of regulations mandated by the administrative simplification section of the Affordable Care Act. The final rule outlines two standards that health plans must comply with in order to use EFT to transmit healthcare claim payments to providers.
- First, health plans are required to use a standard format when ordering, authorizing or initiating an EFT with their banks.
- Second, the rule outlines the data content of the EFT.
Health plans and other covered entities must comply with the provisions of the EFT rule by Jan. 1, 2014. However, CMS indicates that health plans are permitted to use the EFT standards with willing trading partners before that date. Practices not already receiving EFT payments should contact their practice management system software vendor and health plans to discuss incorporating this transaction into their claims revenue cycle workflow.
Read full regulation in the federal register.
CMS proposes one-year delay for ICD-10
Today the Department of Health and Human Services (HHS) published a rule that proposes to delay ICD-10 one year from Oct. 2013 to Oct. 2014.
The rule also includes a proposal to implement a national health plan identifier, required under the Patient Protection and Affordable Care Act of 2010 (ACA). This is a great step to help standardize the health plans so that they can be uniquely identified, just like providers have been for years now.
