I asked this very similar question.  Below is the response I received.

Linda



-----Original Message-----
From:   AskHIPAA AskHIPAA [mailto:[EMAIL PROTECTED]] 
Sent:   Thursday, October 03, 2002 5:42 PM
To:     [EMAIL PROTECTED]
Subject:        Re: Small provider

ASCA contains a provision which requires the electronic submission of
Medicare claims as of October 16, 2003.  However, ASCA provides for
exceptions to this requirement if the entity is considered "small".  ASCA
defines "small" as a provider of services who does not file electronic
claims, with fewer than 10 full time employees and who earns less than 5
million in gross revenue.  The Secretary in unusual cases and in situation
may also grant waivers where there is no method available for the submission
of claims in an electronic form.
There is nothing for you to do now.  HHS will be issuing guidance which will
provide further clarification on these provisions and will explain the
waiver applications process.  

>>> "Shemely, Linda" <[EMAIL PROTECTED]> 10/02/02 11:26AM >>>
If a small provider (one physician) has the methodology to send claims
electronically, do they have to send them electronically to Medicare?  Right
now, they send them via paper.


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