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Health Plans Can No Longer Charge Providers Egregious Fees for Electronic Fund Transfers

Monday, October 9, 2017   (0 Comments)
Posted by: Diane Berg
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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.

Read more FAQs about EFT and VCCs on theCMS web site.

If you are an MGMA member, access the MGMA member-benefitEFT/ERAGuidefor more information and asample letterto request payment via EFT.

Source: KarenZupko & Associates 

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