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The payment disruptions caused by HIPAA 5010 transition have now grown so severe that the Medical Group Management Association (MGMA) has reached over CMS’ head to plea for help.

A pointed letter to HHS Secretary Kathleen Sebelius requested “immediate action to address…considerable cash flow problems for physicians and their practices” that “are being reported with both Medicare Administrative Contractors (MACs) and commercial plans.”

How would you feel if CMS had a direct line into your wallet and took out money every time it felt you were overpaid? Well, you're in luck, because neither technology nor law has gone that far. Instead, CMS is giving you a direct debit option that allows the agency to withdraw funds from your bank account and avoid interest on overpayments starting July 1, according to Transmittal 7688 that was released Jan. 27.

As it is now, your Medicare Administrative Contractor (MAC) begins recouping overpayments 41 days from the date of the initial demand letter. If you don’t pay the debt in full within 30 days of receiving the letter, interest accrues on the overpayment.

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