NACHA Works to Address CMS Recommendations Regarding Use of "Medicare" in Medicare ACH Payments Records

In May of 2014, the Centers for Medicare and Medicaid Services (CMS) issued a letter to Medicare contractors recommending that they include the term “Medicare” on all checks, electronic funds transfers (ACH), and electronic remittance advice (ERA) payments. The term is being added to checks and to the ACH record to help bank examiners identify fraudulent Medicare transactions.

Although CMS recommended inclusion of the word, CMS did not indicate where in the ACH record the word should be included. As such, NACHA staff, working with member banks, considered several options to identify the best way for private sector Medicare contractors to comply with the recommendation from CMS, but was unable to find sufficient space to include the full word "Medicare" in the ACH Record. So, NACHA is recommending that Medicare contractors wanting to comply with the CMS recommendation place the letters “MC” in the first two positions of the Company Name field (Field 3) of the Company/Batch Header Record, followed by the name of the originating company in the last 14 positions.  This is not a change to the NACHA Operating Rules. It is only a recommendation on how to reply to the request from CMS.