An interim rule governing the adoption of healthcare electronic funds transfer standards is now final and in effect, government officials announced.

The rule, published in January and known as the Adoption of Standards for Health Care Electronic Funds Transfers and Remittance Advice, simplifies the format and data content of the transmission a health plan sends to its bank when it’s paying a claim to a provider electronically (via an electronic fund transfer). The plan can issue remittance advice notices, which is a notice of payment sent to the provider.

Officials at the Centers for Medicare & Medicaid Services said the rule would save $4.5 billion in administrative costs and cut red tape for providers.

Click here for more on the final rule.