CMS Pub. 100-04, ch. 24, § 60.5.3

EFT is the required method of Medicare payment for all providers entering the Medicare

program for the first time and for existing providers that are submitting a change to their

existing enrollment data but are not currently receiving payments via EFT.

Once a provider begins to receive Medicare payments via EFT, the A/B MAC or DME

MAC shall not issue any routine, ongoing payments to the provider via check. (For

purposes of this instruction, the term “routine, ongoing payments” means those payments

that are not considered to be “special payments,” as that latter term is used in section 4 of

the CMS-855 application.) This means, therefore, that - with the exception of special

payments - a provider that receives payments via EFT must continue to receive payments

via EFT and cannot switch back to receiving paper checks, even in cases of a MAC

transition or other CMS-initiated action. A/B MACs and DME MACs shall not approve

any requests to change the provider’s payment method from EFT to check.

Note that the A/B MAC or DME MAC shall abide by the instructions in Pub. 100-08,

chapter 10, sections 4.4 and 8 on all provider enrollment issues relating to EFT. This

includes the requirement that A/B MACs and DME MACs compare the information and

signature on the provider’s Form-CMS-588 (Electronic Funds Transfer Authorization

Agreement), to that on the provider’s CMS-855 form on file. For changes of

information, DME MACs shall verify the authorized official on the CMS 855.

An A/B MAC or DME MAC shall use a transmission format that is both economical and

compatible with the servicing bank. If the money is traveling separately from an ASC

X12 835 remittance advice transaction, then A/B MACs and DME MACs shall use

National Automated Clearinghouse Association (NACHA) format CCP (Cash

Concentration/Disbursement plus Addenda -CCD+) to make sure that the addenda record

is sent with the EFT. Providers need the addenda record to re-associate dollars with data.

A/B MACs and DME MACs shall transmit the EFT authorization to the originating bank

upon the expiration of the payment floor applicable to the claim. They shall designate a

payment date (the date on which funds are deposited in the provider’s account) of two

business days later than the date of transmission.

For more information on EFT see IOM Pub 100-08 Chapter 10.