Medicare to delay payment of Non-HIPAA compliant claims
Health Data Management (July 6, 2004)

Effective July 6, Medicare is treating non-HIPAA compliant electronic claims as paper claims in the payment process. That means Medicare will pay the claims no sooner than 27 days from receipt--13 days longer than compliant electronic claims. Accepting non-compliant electronic claims but taking longer to pay them is a change in the health programs HIPAA contingency plan, which paid compliant and non-compliant electronic claims within the same time period. With providers now submitting nearly 90% of electronic Medicare claims in HIPAA-compliant formats, the two-week payment delay is designed to be an additional incentive for those not yet compliant, says Mark McClelland, M.D., administrator of the Center for Medicare and Medicaid Services.

The agency suggests providers needing help to become HIPAA compliant contact their Medicare intermediary or carrier; a listing is available at

Information on free Medicare billing software is available at

Posted to HIPAAcomply 7/6/04