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NACHA Honors U.S. Department of Veterans Affairs for HIPAA-Compliant Electronic Payments System

Monday 22 March 2004 18:33 CET | News

The Electronic Payments Association has selected the U.S. Department of Veterans Affairs (VA), Veterans Health Administration, Chief Business Office as the recipient of the 2004 Kevin OBrien ACH Quality Award. The VA is being recognized for its success in implementing a nationwide electronic health care remittance and payment processing system that complies with the electronic transaction standards of the Health Insurance Portability and Accountability Act (HIPAA). VA is the largest integrated health care provider in the United States. For veterans non-service-connected health care, VA submits approximately 10 million claims every year, and receives third-party payments from some 1,675 different insurers. Along with its partners at PNC Bank and the U.S. Treasury, VA developed the Electronic Payments (e-Payments) System to replace paper checks and remittances. When payers submit payments electronically, VA has shown reductions in the average time from submitting claims to receiving payment of 43 percent, from 49 days to 28 days. Automated data entry and report generation are providing greater speed and accuracy; automated matching of payments and Accounts Receivable (AR) is streamlining the closeout of AR and the preparation of deposits. The Kevin OBrien ACH Quality Award is presented annually to recognize best practices in ACH participants efforts to maintain and improve the quality of ACH services and the integrity and reliability of the ACH Network. The award is named for the late Kevin OBrien, NACHAs Chairman in 1999-2000. NACHA is also presenting Honorable Mentions to the 3M Company for its ePayment Solutions Program to convert its accounts payables from checks to ACH, and to JP Morgan Chase for its Zero Administrative Return process. The ACH Network is a national electronic payments system used by the nations 20,000 financial institutions and an estimated 4.5 million businesses and 135 million Americans. ACH payments include Direct Deposit of payroll, Social Security benefits and tax refunds, Direct Payment of consumer bills, e- checks, business-to-business payments, and Federal tax payments. In 2003 there were more than 10 billion ACH payments made, worth $27.4 trillion.

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Categories: Payments & Commerce | Payments General
Countries: World
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