Physicians should be aware Medicare will not pay any claims for the last nine days of the federal fiscal year (September 22-30, 2006). This one-time payment hold—mandated by the Deficit Reduction Act of 2006—will defer $1.3 billion in FY 2006 claims to the FY 2007 budget.

Held claims will be paid on October 2. No interest or late-payment penalty will be paid to physicians or other health care providers whose payments are delayed by this one-time hold. Physicians with large numbers of Medicare patients should prepare now for this cash flow interruption.

Click here to read the notice from CMS on this issue.

Contact: Reimbursement Help Line, 888/401-5911.