BALTIMORE--CMS announced last week that claims including the new National Provider Identifier will be accepted beginning Jan. 3.

In a memo posted on its Web site, the agency rolled out a timeline for implementing the NPI--a 10-digit number that eventually will replace the legacy Medicare numbers being used for standard health care transactions. The new identifier was mandated under the Health Insurance Portability and Accountability Act to improve and simplify health care transactions. CMS began accepting applications for the new numbers last month.

According to CMS, from Jan. 3 through Oct. 1, 2006, the agency will begin accepting NPIs on claims as long as they are accompanied by an existing legacy Medicare number. Prior to Jan. 3, CMS will reject any claim that includes only an NPI.

From Oct. 2, 2006, through May 22, 2007, CMS will accept an existing legacy Medicare number and/or an NPI. This will allow for six to seven months of provider testing before only an NPI will be accepted by the system. The deadline for switching to the new number is May 23, 2007; small health plans have until May 23, 2008.

For more information, or to complete an NPI application, visit https://nppes.cms.hhs.gov.