Bulletin: January 21, 2005

Medicare to Deny Paper Claims

By: , Compliance Officer

The Centers for Medicare & Medicaid Services (CMS) published a transmittal on January 14, 2005 that contains instructions for the enforcement of the Administrative Simplification Compliance Act (ASCA). This act prohibits Medicare from making payment for claims that are not submitted electronically unless the provider meets specific exception criteria. Effective July 1, 2005 paper claims submitted to Medicare will not be paid. Entities determined to be in violation of the statute may be subject to claim denials, overpayment recoveries, and applicable interest on overpayments.