One number for all plans: new provider identifiers to simplify claims processing.(Practice Trends)

WASHINGTON -- A new, simplified system for identifying providers should make claims processing easier for physicians.

The Centers for Medicare and Medicaid Services in January issued a final rule that announced its adoption of National Provider Identifiers (NPIs) as the standard, unique identifier that providers will use to file health care claims with Medicare and other plans. Under this new system, all providers, including physicians, hospitals, and nursing homes, will apply for a unique 10-digit NPI number.

NPIs are a part of the administrative simplification provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Providers can start applying for NPIs when the rule goes into effect on May 23, 2005.

According to CMS, NPIs will reduce costs by eliminating the need for providers to use multiple ID numbers assigned by multiple health plans. With just one number to worry about, physicians will be less likely to make mistakes on claims forms, a CMS spokesman told this newspaper.

NPIs should help reduce the cumbersome paperwork burdens on physicians and their staff, Dr. Joseph Heyman, a trustee for the American Medical Association from Amesbury, Mass., said in an interview. "While we have yet to review the final HIPAA rule, any initial costs and administrative hassles should be outweighed by the long-term increased cost savings of standardization," Dr. Heyman said. "The AMA has long advocated that red tape burdens must be reduced so physicians can focus on patients, not paperwork."

Physicians will have time to implement ...