The Department of Health and Human Services announced new standards Thursday that it said would streamline the electronic health claims process and save providers and government health plans $4.5 billion in administrative costs.
The regulation, 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 (through an electronic funds transfer) and to issue a Remittance Advice notice.
Centers for Medicare & Medicaid Services CMS Acting Administrator Marilyn Tavenner said the rule ensures that healthcare providers will spend much less time on paperwork.
The regulation took effect Sunday. All health plans covered under HIPAA must comply by January 1, 2014. Click here to view the interim final regulation with comment period.
