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April 2004
 Medicare Providers:
Their Vendors, Clearinghouses, or Other Third-Party Billers and
the HIPAA/Medicare Contingency Plan
The Centers for
Medicare & Medicaid Services (CMS) announced a modification of
the HIPAA contingency plan implemented by Medicare on October 16,
2003. Specifically, CMS announced on February 27, 2004, that
Medicare would continue to accept claims electronically in a pre-HIPAA
format on or after July 1, 2004, but such claims would not be
eligible for Medicare payment until the 27th day after receipt, at
the earliest. All electronic claims today are eligible for payment
at 14 days after receipt. This modification of the HIPAA
contingency plan was intended to give providers additional time to
become HIPAA compliant, but was also a measured step toward ending
the contingency plan for all incoming Medicare claims.
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