Eli's Hospice Insider

Published on Mon Jul 18, 2011 PDF

If you get a Medicare check returned with an "account closed" message, don't panic. CMS has converted its banking contracts with JP Morgan and U.S. Bank to Federal Acquisition Regulation (FAR) contracts, and thus has instructed the banks to close all bank accounts and letters of credit associated with the old configuration and contracts, Medicare contractor National Government Services says in an e-mail message to providers.

"Normally, Medicare checks are valid for a 12-month period after the payment date on the check and then they are automatically stale-dated, at which point they become void," NGS notes. But because the accounts were closed for the contract transition, providers may see checks returned.

Do this: Affected providers must contact the Provider Contact Center and have the checks reissued under a new account. Returned check fees will also be "addressed," NGS says.