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Important Information Regarding Payment of the Medicare Enrollment Application Fee

Posted on March 25, 2011 in Health Law News

Published by: Hall Render

As a part of the implementation of Section 6401(a) of the Affordable Care Act (ACA), on or after March 25, 2011, Medicare institutional providers of medical or other items or services and suppliers submitting a paper CMS-855A, CMS-855B or CMS-855S or any associated Internet-based Provider Enrollment, Chain and Ownership System (PECOS) enrollment application will be assessed an application fee of $505.00 for CY 2011.  (Physician and non-physician practitioner organizations are exempt from the application fee.)  The fee assessment, which will be adjusted annually in line with the Consumer Price Index, will be used by the Secretary to cover the costs of the enrollment program and associated provider screening processes.

More specifically, institutional providers subject to the new fee are those newly-enrolling, re-enrolling/re-validating or adding a new practice location.  To facilitate the enrollment and payment processes, there are two (2) options, electronic or paper, available to institutional providers applying to participate in the Medicare program:

  1. Electronically Using the Internet-Based PECOS:  Applicants using this method will complete and submit electronically the enrollment application and will submit payment through www.Pay.gov.  This Website provides step-by-step payment instructions.

  2. Paper Submission:  Applicants electing to submit a paper application must complete the application and pay the application fee through www.Pay.gov (prior to mailing the application) following the instructions provided.

Importantly, institutional providers should note that all fee payments must be processed through Pay.gov, which accepts Visa, MasterCard, American Express, Discover, electronic checks or debits from the institutional providers’ checking or savings accounts.  No payments by mail, telephone or paper check can be accepted.  Although payment cannot be sent by mail, the completed Section 15 or 16, any required supporting documentation and a receipt verifying online payment must be forwarded to the Medicare contractor via hand delivery, the United States Postal Service or through a carrier service.

If you have questions or concerns regarding the foregoing or would like additional information, please contact your regular Hall Render attorney, or Todd Selby at tselby@hallrender.com or317.977.1440, Brian Jent at bjent@hallrender.com or 317.977.1402, or David Bufford at dbufford@hallrender.com or502.568.9368.