PURPOSE: This rule describes the procedures for the direct deposit of Medicaid (Title XIX) provider payments. This option will decrease the amount of time required to receive funds through the mail and eliminate lost checks.

1. (1) Effective November 1, 1993, the Missouri Medicaid program will offer enrolled providers the option of having their Medicaid (Title XIX) checks automatically deposited to an authorized bank account.

2. (2) Medicaid providers electing to participate in the direct deposit option must complete the Application for Provider Direct Deposit Form MO 886-3089, unless otherwise agreed upon by the Department of Social Services.

   1. (A) The completed application authorizes the Office of Administration to deposit Medicaid payments into an authorized checking or savings account.
   2. (B) A provider’s account may only be debited when an error has occurred resulting in an erroneous payment to the provider.

   3. (C) Direct deposit will begin following:

      1. 1. Submission of a properly completed

application form to the Department of Social Services;

1. 2. The successful processing of a test

transaction through the banking system; and

1. 3. Authorization to make payment using

the direct deposit option by the Division of Medical Services.

1. (D) The state will conduct direct deposit through the automated clearing house system, utilizing an originating depository financial institution. The rules of the National Automated Clearing House Association and its member local Automated Clearing House Associations shall apply, as limited or modified by law.

1. (3) All direct deposit applications must be signed by the provider enrolled in the Medicaid program when that provider is an individual. Signature stamps will not be accepted. Applications on behalf of groups or businesses (except those described in this rule) must be signed by the individual (officer) with fiscal responsibility for the group or business. Applications for nursing homes, hospitals, independent laboratories and home health agencies must be signed by an individual listed on the disclosure of ownership form (HCFA-1513) in section III(a) or in the Remarks section of the form.
2. (4) The Division of Medical Services will terminate or suspend the direct deposit option for administrative or legal actions, including, but not limited to, ownership change, duly executed liens or levies, legal judgments, notice of bankruptcy, administrative sanctions for the purpose of ensuring program compliance, death of a provider, and closure or abandonment of an account.
3. (5) Effective February 1, 1994, the Division of Medical Services will no longer allow providers or their representatives to accept delivery of the Medicaid checks in person. All checks will be direct deposited or mailed.

AUTHORITY: section 208.201, RSMo Supp. 1987.* Original rule filed Oct. 4, 1993, effective June 6, 1994.

*Original authority:208.201, RSMo 1987. and Procedure of General Applicability 13 CSR 70-3 and Procedure of General Applicability 13 CSR 70-3 and Procedure of General Applicability 13 CSR 70-3