Starting July 6, 2004 Medicare will delay payment of electronic claims to physical therapists and other providers if those transactions are not compliant with new federal rules on submission of electronic claims.

In an effort to encourage provider compliance, the Centers for Medicare and Medicaid Services (CMS) announced last week that it is modifying it's October 2003 contingency plan for compliance with the electronic transaction rules required by the Health Insurance Portability and Accountability Act (HIPAA). Medicare will continue to pay claims that do not comply with the HIPAA transaction standards, but starting July 6, it will take 13 additional days for the agency to process non-compliant claims.

Covered entities that currently are submitting HIPAA-compliant claims will not be affected by the policy change. To review the full text of the new contingency plan provisions, go to www.cms.hhs.gov/manuals/pm_trans/R114CP.pdf. To learn more about complying with HIPAA and adapting your practice to Medicare changes, register now for APTA's “Rules, Regs, and Red Tape,” a 1-day seminar April 2 in Phoenix , Arizona . APTA also offers HIPAAstepsPT , an online HIPAA compliance tool.