Covered health care providers and all health plans and health care clearinghouses must use the NPIs in the administrative and financial transactions adopted under HIPAA (Health Insurance Portability and Accountability Act).

The NPI must be used in lieu of legacy provider identifiers in the HIPAA standards transactions. NPI Number: The National Provider Identifier (NPI) is a unique identification number for covered health care providers. Participating providers have signed an agreement to accept assignment for all Medicare-covered services. Most doctors, providers, and suppliers accept assignment, but you should always check to make sure. Medicare Assignment: Assignment means that your doctor, provider, or supplier agrees (or is required by law) to accept the Medicare-approved amount as full payment for covered services. This program also covers certain younger people with disabilities (who receive Social Security Disability Insurance - SSDI), and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD.

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