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There are Many Benefits to Signing Up for Electronic Funds Transfer (EFT)
With Electronic Funds Transfer (EFT), Medicare can send payments directly to a provider’s financial institution whether claims are filed electronically or on paper. All Medicare providers may apply for EFT.
Advantages of EFT
EFT is similar to other direct deposit operations, such as paycheck deposits, and it offers a safe, modern alternative to paper checks. Providers who use EFT may notice the following benefits:
- Reduction of paper in the office
- Staff saves valuable time and avoids hassle of going to the bank to deposit a Medicare check
- The risk of Medicare paper checks being lost or stolen in the mail is eliminated
- Faster access to funds; (many banks credit direct deposits faster than paper checks)
- Easier reconciliation of payments with bank statements.
How to Enroll in EFT
The National Supplier Clearinghouse (NSC) processes all Medicare applications for DMEPOS suppliers. Per 42 CFR 424.510(e)(1), providers and suppliers are required to receive electronic funds transfer (EFT) at the time of enrollment, revalidation, change of Medicare contractors or submission of an enrollment change request; and (2) submit the EFT Authorization Agreement CMS-588 form to receive Medicare payment via electronic funds transfer.
If you have not yet signed up for EFT, take advantage of all the benefits.
- Download the CMS 588 (PDF) form from the CMS website
- Follow the instructions for completing the EFT authorization agreement
- Mail the form to the Medicare contractor that services your geographical area
- An EFT authorization form must be submitted for each Medicare contractor to whom you submit claims for Medicare payment
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Last Updated Fri, 08 Apr 2022 12:55:48 +0000