Defecit Reduction Act Mandates Delay in Payments to Medicare Providers

The policy applies only to claims subject to payment. It does not apply to full denials and no-pay claims. It also does not apply to periodic interim payments, home health request for anticipated payments, cost reports settlements, and other non-claim payments. A brief hold will be placed on Medicare payments for ALL claims for the last 9 days of the Federal fiscal year, i.e., September 22, 2006-September 30, 2006. Providers need to be aware of these payment delays, which are mandated by section 5203 of the Deficit Reduction Act (DRA) of 2006. No interest will be accrued or paid, and no late penalty will be paid to an entity or individual for any delay in a payment by reason of this one-time hold on payments. All claims held as a result of this one-time policy that would have otherwise been paid on one of these 9 days will be paid on October 2, 2006. To learn more, click on HOLD on MEDICARE PAYMENTS