Update Your Reporting Method To Medicare

Update Your Reporting Method To Medicare or Face Denials

Times are changing when performing electronic medical billing to Medicare.

Beginning on August 1, 2005, noncompliant electronic claims billed will be denied. These billed medical claims must be compliant with the Health Insurance Portability and Accountability Act (HIPAA). Currently there is a medical billing contingency plan in effect that does accept these noncompliant claims, but that will soon end.

In order to ensure the most efficient payment possible, submitting compliant electronic claims is recommended. Otherwise, the Centers for Medicare & Medicaid Services will send the claim back to you unprocessed and with no payment. To get medically reimbursed for this billing, you must resubmit with the correct compliant format.

You’re probably thinking that this will cause problems and turmoil within the Medicare medical billing system. According to the Centers for Medicare & Medicaid Services, that will not happen. With the current contingency plan that accepts noncompliant bills, only 0.5 percent were actually on noncompliant medical billing forms. They do not think it will be an issue to get 100% compliance on these medical bills.

If the cost of this medical billing software is worrying you, don’t worry. The Centers for Medicare & Medicaid Services will make it their priority to ensure providers have inexpensive or free software available.

To avoid future denials and increased medical billing time, it is important to update your reporting methods immediately. If you use an outside medical billing firm to perform billing responsibilities, they will update the reporting methods for you. It is their job to ensure your claims are as accurate and up to date as possible. Using a medical billing firm may save your practice time and money when updating reporting methods. Correct medical billing procedures are essential for the longevity of your business.

View all Articles by: Melissa C. - OMG, LLC. CEO