News: CMS rule phases out fax, snail mail in effort to save money, ease provider burden

A new CMS rule will phase out fax machines and snail mail, replacing them with electronic transactions. This phase-out seeks to prioritize healthcare provider’s time and allow them to spend more time caring for patients and less time on administrative issues.

Titled “The Administrative Simplification; Adoption of Standards for Health Care Claims Attachments Transactions and Electronic Signatures Final Rule,” the rule is projected to save the healthcare industry about $781 million annually. It establishes national standards for the electronic exchange of clinical documentation used to support healthcare claims, as well as adopts standards for electronic signatures to allow for authenticated transmissions of information.

Providers have used faxing and mailing in the past to submit additional claims-related documentation requested by health plans, including medical records, X-rays, clinical notes, telemedicine visit documentation, and laboratory results—all of which cause delays and unnecessary costs. CMS’ new standards are meant to establish a more consistent, easy-to-use framework for transmitting all documentation and improve efficiency across the healthcare system.

The standards also apply to entities covered by HIPAA, including health plans, healthcare clearinghouses, and healthcare providers that conduct electronic transactions.

“The futuristic medical breakthroughs we’ve achieved, like augmented reality glasses that give surgeons X-ray vision, shouldn’t have to coexist with administrative systems that often lag decades behind,” said Dr. Mehmet Oz, the administrator of CMS. “This new rule will modernize American healthcare by standardizing electronic claims attachments and enabling secure electronic signatures. Because every minute providers save on paperwork is another minute they can spend caring for patients.”

The rule will be effective on May 26, 2026, 60 days after publication in the Federal Register. Covered entities must comply by May 26, 2028, 24 months of the effective date.

Editor’s note: To read the CMS press release, click here. To view the final rule, click here. To view the final rule fact sheet, click here. for more information, click here.