First Coast Service Options (FCSO) implemented changes to the financial cycle that will improve timeliness of your payments and cash flow. Previously, Part A providers in Puerto Rico and U.S. Virgin Islands receive eligible Medicare payments once a week. Effective Monday, March 1, 2010, providers now receive their eligible Medicare payments each business day, excluding federal holidays. Florida Part A providers currently receive their payments daily.

Providers may not notice the increased payment frequency until mid-March as this change applies to adjustments and claims approved to pay after March 1, 2010. The change to a daily financial payment cycle will not affect Medicare timeliness standards for processing claims. To review the Centers for Medicare & Medicaid Services’ (CMS) claim processing guidelines, click here.

Providers using a third-party vendor, such as a clearinghouse or a billing agency, are encouraged to contact their vendors to ensure the ERAs are posted daily starting March 1, 2010. Most vendors already offer this daily service. If you use PC ACE-Pro 32® or other software to download ERAs, the process to access the remits will not change. The only change is the ability to download the ERA on a daily basis.

Providers may consider reviewing their internal process for retrieving remits and reconciling patients’ accounts to determine if any modification to their process is necessary to accommodate this change to daily payments. Providers will continue to receive certain eligible payments, such as Indirect Medical Education (IME) and bad debt payments, on a biweekly basis.

Note: FCSO’s transition to a daily financial payment cycle does not change the current payment cycles for Medicare Advantage plans.