CMS posted this message this morning:
This message is a reminder for all providers and physicians who bill Medicare contractors for their services.
A brief hold will be placed on Medicare payments for all claims during the last 9 days of the Federal fiscal year (September 22 through September 30, 2006). These payment delays are mandated by section 5203 of the Deficit Reduction Act of 2005. No interest will be accrued and no late penalties will be paid to an entity or individual by reason of this one-time hold on payments. All claims held during this time will be paid on October 2, 2006.
This policy only applies to claims subject to payment. It does not apply to full denials, no-pay claims, and other non-claim payments such as periodic interim payments, home health requests for anticipated payments, and cost report settlements.
Please note that payments will not be staggered and no advance payments will be allowed during this 9-day hold.
Plan you cash needs carefully for September and October. Payroll will still have to be made for your staff. If you don’t already have a line of credit with your bank, set one up in case you need it to meet this kind of short term cash shortall.