A recent survey by the Medical Group Management Association (MGMA) showed that 1 in 6 practices are paying fees for Electronic Fund Transfer (EFT), due to the payor using what is called a "Virtual Credit Card (VCC)" in order to accept electronic payments. These fees range from 2%-5% of the medical services payment.
MGMA has been working with CMS to change this and require that plans charge a more reasonable fee for EFT. This week, CMS released guidance on this issue.
Here's What You Need to Know
1.Health plans that are sending VCC payments must stop if a practice notifies the payor it wants to receive payments via EFT.
2.Plans cannot charge unsanctioned fees for the use of EFT. The amount must be similar to bank transaction fees - which are usually about 34 cents per transaction.
Signing up for EFT doesn't allow the plan to deduct funds from your account unless you have entered into a contract with the plan that allows them to do this.