Affordable Care Act Provision Cuts Red Tape, Saves $4.5 billion January 12, 2012 Health Care Reform, News, Technology Affordable Care Act, EFT standard, electroniic funds transfer, HHS 0 The Department of Health and Human Services (HHS) has adopted a new standard for electronic funds transfer (EFT) transactions. According to HHS, this industry-wide standard could save as much as $4.5 billion in administrative costs over the next decade. The new standard, which health plans must comply with no later than January 1, 2014, creates a tracking system that will simplify the current manual process of reconciling payments. Health plans will be required to use a trace number that automatically matches EFT payments with the remittance advice that explains the payment—regardless of whether the payment and remittance advice were sent together. The standards build upon regulations published earlier this year that set industry-wide standards for how health providers use electronic systems to quickly and easily determine a patient’s eligibility for health coverage and check on the status of a health claim. “The less time a physician has to spend on paperwork is that much more time that can be devoted to patient care,” Centers for Medicare & Medicaid Services Acting Administrator Marilyn Tavenner said in a news release. “Having standardized procedures across the health care industry can only lead to lower costs and greater efficiencies all around.” Comments are closed.
