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March 2008 Client Newsletter


The 2008 Medicare Part B deductible increased to $135 further slowing cash flow over the previous year. Cash flow will be down as usual in January & February since Medicare deductibles hit - until secondary insurance & patient payments are received in February & March.

Just a reminder that historically for all providers it takes until the end of March before cash flow catches up to normal levels due to the new insurance deductibles (Medicare and other insurances). This means that Days-in-Accounts Receivable and AR will go up in January & February then begin to decrease to normal levels in March when cash flow catches up.

NPI # Information From Medicare

We are pleased to report that CPB has been sending only the NPI # to Medicare for several weeks without any problems getting paid. At least for Medicare patients, it appears we are in good shape for May 23rd.


Once we get past the annual deductibles in March, there is still potential for cash flow interruption when the NPI # becomes mandatory for all insurers on May 23rd. Our concern now is that other insurers (including Blue Shields, Medicaids, etc.) do not seem to be doing much testing.

We recommend taking this into consideration if you plan to make any significant purchases until we see how well the national system (Medicaid, Horizon, other Blue Shields, CIGNA, AETNA, etc.) handles the NPI # only.

Horizon, as of 2/28/08, still is not ready to test! We will continue to test claims as insurers indicate they are ready.
2008 Client Newsletter Archive