Do I need an NPI Type 2 to credential with Medicare?

Yes, for a group practice or PLLC, you need an NPI Type 2 (organizational NPI) to enroll with Medicare. Your individual NPI Type 1 is not sufficient for group enrollment. If you don't have one yet, you'll need to apply for it first through NPPES.

What is the difference between CMS-460 and CMS-588?

CMS-460 is the Medicare Participating Physician or Supplier Agreement, which means you agree to accept Medicare's allowed amount as full payment. CMS-588 is the Electronic Funds Transfer (EFT) Authorization form that links your bank account for receiving payments from Medicare.

Why is my Medicare application being delayed due to name mismatches?

Medicare requires exact name matches between your IRS CP-575, bank account, and NPI Registry. Even small differences like 'PLLC' vs 'LLC' can cause rejections. Ensure all three sources use the exact same legal business name before submitting your application.

Should I select 'Clinics/Group Practices' even if I'm a sole owner?

Yes. Even if you are the sole owner of a PLLC, Medicare considers you a group practice. You should select 'Clinics/Group Practices' for Healthcare Services Rendered and 'Practitioner as Sole-Owner of an Incorporated Business' for Applicant Description.

How long does Medicare credentialing take?

Medicare credentialing typically takes 30-90 days from submission, but can be longer if there are issues with name mismatches or missing documentation. Ensuring all names match exactly and all required documents are submitted can help avoid delays.

Can I authorize someone else to help with my Medicare enrollment?

Yes, you can authorize a biller or credentialing specialist as a Staff Member or Surrogate in PECOS. This allows them to manage your enrollment on your behalf. See our blog post on authorizing your biller for detailed instructions.

What documents do I need for EFT setup?

You'll need your NPI Type 2, TIN/EIN, a copy of your IRS CP-575 letter, and either a voided check or an official bank verification letter. The bank letter must match your IRS CP-575 name exactly.

Credentialing

How to Credential Medicare as a Therapist LLC

By George Ruan • December 21, 2025

Navigating Medicare credentialing can feel like wandering through a maze. If you've recently started a PLLC or a group practice in Illinois, you know that the navigating through PECOS, CMS-460, and NPI Type 2 can be overwhelming.

However, becoming a Medicare provider is one of the most effective ways to expand your reach and ensure that quality mental health care is accessible to those who need it most. Whether you are an LCPC, LCSW, or LMFT, this guide will walk you through the exact process of credentialing your group practice in Illinois.

Step 1: The Initial Setup (PECOS)

Before you dive into the forms, you need to set up your digital home base. Medicare uses the Provider Enrollment, Chain, and Ownership System (PECOS).

Create your PECOS Account: If you haven't already, register through the CMS website.
[Optional] Authorizing Surrogate: If you have an admin or a credentialing specialist (like "Bomi Health") helping you, you must assign them as a Staff Member or Surrogate within the system. See blog post here https://www.billwithbomi.com/blog/authorizing-your-biller-for-medicare-enrollment

Step 2: The Application

When you begin the enrollment, the system will ask a series of questions. For a mental health group practice (like a PLLC), here is how you should navigate. While we won't go through every step here, we'll cover some areas that are easy to confuse:

Application Questionnaire

Healthcare Services Rendered: Select Clinics/Group Practices. Even if you are the sole owner of an incorporated business (PLLC), you are technically a group.
Applicant Description: Choose Practitioner as Sole-Owner of an Incorporated Business.
Primary Specialty Mapping: Medicare uses specific terminology. Map your Illinois license as follows:

Business & Practice Information

IRS Status: Typically "Proprietary."
Effective Date: This is the date you are filing the form.
Practice Location: Ensure you verify the address via the USPS prompt. This should be your physical office where services are rendered (or your primary administrative office).

Individual Control

Even though you are a sole owner, you the owner have managing control with > 5% ownership. So you will need to fill in your information.

Billing & EFT (The Money Part)

To get paid, you must set up Electronic Funds Transfer (EFT). You will need:

Your NPI Type 2 (Group NPI).
Your TIN/EIN (Employer Identification Number).
A copy of your IRS CP-575 (the letter you received when you got your EIN).
A voided check or bank verification letter.

Business Name Mismatches

The #1 reason Medicare applications are delayed for Illinois therapists is a Name Mismatch between the bank account, IRS records, and NPI Registry.

Common Gotchas

IRS CP-575 vs Bank Mismatch. If your bank account is under "Jane Doe PLLC" but your IRS CP-575 says "Jane Doe LLC" (missing the P) Medicare will reject the EFT form.
IRS CP-575 vs NPI Registry Mismatch. Similarly, if your NPI Registry is under "Jane Doe PLLC" but your IRS CP-575 says "Jane Doe LLC" (missing the P), Medicare will reject the EFT form.

Don't wait for the rejection.

For Bank Mismatches, proactively ask your banking representative for an official letter on bank letterhead, signed by an authorized representative, confirming:

Business Legal Name: (Must match the IRS CP-575 exactly)
Routing Number
Account Number
Bank Official Signature.

For NPI Registry Mismatch, you can change your NPI Type 2's official name on the NPI Registry. If you don't have an NPI Type 2, follow this blog post: https://www.billwithbomi.com/blog/how-to-apply-for-an-npi-type-2.

Note: Changing your NPI Registry name will often-times not trigger a demographic update with other commercial payers unless the name is significantly different. If you would like, you can update your DBA with your commercial payers.

Step 3: Finalizing the Forms

Once the data is entered, you'll need to sign and upload three critical documents.

CMS-460 (Medicare Participating Physician or Supplier Agreement): This is your agreement to accept "assignment" (Medicare's allowed amount) as full payment, similar to your contract reimbursement terms with commercial payers.
CMS-588 (EFT Authorization): This links your bank account.
Certification Statement: The formal "attestation" from you

Still Feeling Lost?

If you're in need of help, we're happy to assist. Instructions to contact us are at https://billwithbomi.com/#contact.