Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is a process whereby your Medicare payments are directly deposited into your bank account. It is safe and results in faster payment. In addition, direct deposit eliminates the possibility of lost or delayed checks, and there is a reduced probability of human error.
CMS requires that all providers that are enrolling as Medicare DME suppliers or making any changes to their enrollment files, must use EFT. As stated in 42 CFR §424.510(d) (2) (iv) and §424.510(e), all providers (including Federal, State and local governments) entering the Medicare program for the first time must use EFT in order to receive payments. Moreover, any provider not currently on EFT that: (1) submits any change to its existing enrollment data or (2) submits a revalidation application, must also submit a CMS-588 form and thereafter receive payments via EFT. To sign up, you must complete an Authorization Agreement for Electronic Funds Transfer . Complete the form and have it signed and dated by the supplier or authorized/delegated official. This signature must be the same as the original signature on file with the National Supplier Clearinghouse; it cannot be a copied or stamped signature.
Under the Physician/Provider/Supplier Information section, the form asks for your "Medicare Identification Number." In this field, please indicate your National Supplier Clearinghouse number or your National Provider Identifier number. If you have not yet applied for an NPI, do so as soon as possible by applying at NPPES.cms.hhs.gov/NPPES/Welcome.do .
When submitting your form, include a voided check or deposit ticket with a pre-printed name on it. Although either is acceptable, to avoid delays in processing due to different routing numbers on checks and deposit slips, Noridian encourages suppliers to submit a voided check instead of a deposit slip. Copies of checks or deposit slips are not acceptable. It will take approximately three weeks before the EFT will take effect. You will be informed of the exact date through a letter. Suppliers will receive paper checks until the EFT process is complete.
- To change accounts or banks, fill out a new EFT form, using the new account information and a voided check or deposit ticket from the new account.
- If you close your bank EFT account, Noridian will place you on payment withhold until a new EFT agreement (and CMS 855, if applicable) is submitted and approved. If such an agreement is not submitted within 90 days after Noridian first learned that the account was closed, Noridian will commence revocation procedures.
To submit the EFT form to the appropriate address, go to the Noridian Mailing Addresses webpage.
Suppliers can expect to see payments in the bank within 30 days of Noridian receiving the EFT application (this includes a 15-day pre-note test period).
Incomplete or inaccurate information on your application can delay processing time. The EFT application can be rejected for a number of reasons, most commonly for incomplete or inaccurate information, the form not signed by the authorized or delegated official on record with Medicare or not enclosing the proper banking documentation. Please supply the information requested and a copy of the letter received and mail it in for processing.
If you have any questions regarding your EFT form, contact the Noridian Supplier Contact Center.
After enrolling for EFT, your office will continue to receive remittance advices, either on paper or electronically, as you do today.
Electronic Remittance Advices (ERAs)
Noridian encourages suppliers to consider receiving remittance advices electronically. The ERA arrives sooner than a Standard Paper Remittance (SPR) advice. By receiving ERAs, suppliers may be able to take advantage of auto-posting of accounts and financial reporting provided by many software vendors. CMS provides free software, Medicare Remit Easy Print, to download and print electronic remittance advices. To download this software, see the CMS website, http://www.cms.gov/Research-Statistics-Data-and-Systems/CMS-Information-Technology/AccesstoDataApplication/index.html . Keep in mind that if you take advantage of the electronic remittance advice option, paper remittances will be discontinued after 45 days.
Last Updated Jun 09, 2016