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Glenn Hegar  ·  Texas Comptroller of Public Accounts

ACR 43829 – TINS System Change
Jan. 3, 2014

Introduction

ACR 43829 will make direct deposit changes for healthcare Automated Clearing House (ACH) payments in the Texas Identification Number System (TINS) effective Jan. 3, 2014. These changes also affect the Uniform Statewide Accounting System (USAS).

Issue

Payee payments, including healthcare-related payments that process through USAS, have been transmitted to financial institutions using the ACH Corporate Trade Exchange (CTX) format. The remittance information that state agencies provide in the USAS invoice description field is transmitted with the payment to the payee’s financial institution.

The U.S. Department of Health & Human Services (HHS) set new Electronic Funds Transfer (EFT) requirements that arise under the Health Insurance Portability and Accountability Act for payments to healthcare providers. The compliance date for new EFT requirements is Jan. 1, 2014. The requirements were published in the Federal Register PDF on Aug. 10, 2012.

Due to this federal requirement, the National Automated Clearing House Association (NACHA) adopted rules to standardize the data within the addenda record using the ACH Corporate Credit or Debit (CCD+) format. The rules:

  • Require the use of a Reassociation Trace Number (RTN) to help providers match the healthcare Explanation of Benefits with the payment.
  • Help to minimize the risk of transmitting Protected Health Information by use of the RTN through the ACH Network.

When requested by the payees, the financial institutions must provide the RTN to the payees by opening of business on the second banking day following the effective date of the payment. The method for providing this information must be coordinated by the payees and their financial institutions.

Solution

This ACR will make TINS and USAS compliant with the NACHA and HHS rules.

Each state agency and institution of higher education must determine if the HHS rules apply to any healthcare-related payments issued by the agency.

Agencies that determine their payments are affected by these rules must contact the Comptroller’s office to:

  • Coordinate changing the affected payees’ direct deposit payments to the new required layout
  • Test their healthcare-related payments in USAS

If you have questions, please contact Payment Services.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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