I work in HHS and would like to respond to this issue.

Here is the question:  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.

Here is the response:  They may continue to send paper.  The Administrative 
Simplification Compliance Act (ASCA) prohibits Medicare from paying paper claims 
received after October 16, 2003, except in certain situations.  Those situations waive 
the requirement to submit electronic claims to Medicare after October 16, 2003.  Those 
situations are:  the provider is a small provider; the provider has no means to send 
claims electronically; other situations that the Secretary may deem appropriate.  ASCA 
defines a small provider as a provider of services with fewer than 25 full-time 
equivalent employees, or a physician, practitioner, facility or supplier (other than a 
provider of services) with fewer than 10 full-time equivalent employees.  There is no 
gross revenue figure attached to the definition of a small provider in this 
legislation.  Because the provider in question is small by the ASCA definition, it is 
waived from the requirement to submit Medicare claims electronically.  If it has the 
means to submit electronic claims to Medicare, it certainly may do so but that is not 
a requirement of this law.  A regulation will be published that will clarify this ASCA 
provision.  At this time, any information needed by Medicare providers with respect to 
this provision will be furnished to them by their Medicare carriers or fiscal 
intermediaries.  These providers need take no action with regard to this provision 
until they receive that information.



Patricia Peyton
HIPAA Project Staff
Centers for Medicare & Medicaid Services
7500 Security Boulevard
Baltimore, MD  21244-1850
(410) 786-1812

>>> [EMAIL PROTECTED] 10/10/02 01:36PM >>>
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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