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As of October 2003, Medicare mandated the X12 837 transaction for all Medicare claims except those from very small practices. Third-party payers may continue to accept paper transactions too, however. But practices that elect to use paper claims must have two versions of their medical billing software: one to capture the necessary data elements for HIPAA-compliant electronic Medicare claims and another version to generate CMS-1500 claims. Also, under HIPAA regulations, only medical offices that do not handle any other HIPPA-related transactions can still use paper claims. It is anticipated that eventually, for cost reasons, all payers will require electronic submissions and add this provision to their contracts with providers.

Houser, Helen J., and Terri D. Wyman. "Insurance and Billing." Administrative Medical Assisting: A Workforce Readiness Approach. New York: McGraw-Hill, 2012. 480. Print.

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Q: Why must the X12 837 health care claim be used for medicare claims?
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