The Centers for Medicare and Medicaid Services (CMS) announced that all health care providers can now apply for their National Provider Identifier, or NPI.

The National Provider Identifier (NPI) will be a single provider identifier replacing the different provider identifiers currently used for individual health plans.

Effective May 23, 2007, covered entities must use the NPI to identify health care providers in standard transactions (small health plans must be compliant by May 23, 2008). These transactions include: claims, eligibility inquiries and responses, referrals and remittance advices.

Although health care providers are encouraged to apply for their NPI, this provision is in its transition stage. Health plans will notify providers when to use the NPI in standard transactions. Applying for an NPI does not replace any enrollment or credentialing processes with any health plan, including Medicare.