Deficit Reduction Act of 2005 – Nine-Day Payment Hold

CMS Contractor Provider Education Resources Listserv and CMS JSM-06549, dated July 12, 2006 – A brief hold will be placed on Medicare payments for all claims during the last nine days of the federal fiscal year (Sept. 22 through Sept. 30, 2006). These payment delays are mandated by section 5203 of the Deficit Reduction Act of 2005 (DRA). 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 Oct. 2, 2006.

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