Why Payer IDs instead of using the FEIN?
The most important reasons to use the Payer ID instead of the FEIN are: • Provider’s systems typically don’t have enough storage space for the FEIN. Most of them allow for only 5 bytes to identify the Payer ID. • The old NSF and UB82 flat files, still very much in use by providers, only have 5 bytes for Payer ID. • The common Payer IDs used under HIPAA are 5 bytes long. • Using the NAIC co-codes is the most common way to enumerate payers under HIPAA. Practically all clearinghouses use these today. • We are trying to re-use as much as possible, without making provider change their systems. • Some Carriers will need/want to use multiple Payer IDs in order to separate their lines of business, even if they only have one FEIN or one NAIC Co-code. • Some Carriers will need/want to use one single Payer ID for all their lines of business, even if they have multiple FEINs. • The Bill Review companies, PPOs and TPAs will need to be enumerated with a Payer ID for purposes of routing these eBill t
