Part 2: HIGLAS to Effect Cash Flow - End of July - 1st of August

Medicare Payments to be received earlier

just for a short time.

As an earlier post indicates, WPS will install a new standardized accounting system called HIGLAS. In order to install the system, WPS must reduce the payment floor for both paper and electronic claims to zero. Payments will be released early for claims that have already been approved for payment. The payment floor reduction begins on July 28, 2010 and goes through July 30, 2010.

It's planned that on approximately August 6th, there should be no claims left in the system so that the transition can take place. On August 9, 2010, the payment floor will be reset to 29 days for paper and 14 days for electronic claims.

This is what you need to remember! This temporary reduction of the payment floor will result in payments being issued EARLY (both checks and EFT's). This may give the appearance that your cash revenues have increased, when in fact you have just received your payments early.

Providers are encouraged to monitor their payments and make necessary adjustments as necessary to prevent cash flow problems during the transition period. Since payments will be issued early - there will be a period of time after the early payments that you will not be receiving any payments.