HIPAA To Standardize Electronic
Transactions
Congress intended this law to simplify administrative
and financial transactions in health care through
the adoption of national standards for the electronic
transmission of health information. The stated goals
are to improve efficiency and reduce costs in health
care. These are great ideas, but the details for implementation
and compliance are anything but simple!
The intended bottom line is that HIPAA will eventually
require every health plan, as well as every health
care institution and practitioner who maintains or
transmits health information electronically, to be
in compliance with the administrative simplification
mandates by January 1, 2003. Once these regulations
are in place, each health care provider and plan will
need to examine and evaluate its patient data privacy,
electronic data security and transmission policies,
procedures, practices and protocols. This administrative
simplification is the last major component of HIPAA
to be implemented.
If everything comes together as intended by HIPAA,
which was originally enacted in 1996, these provisions
should cut costs and improve efficiency for the employer.
Other benefits will hopefully accrue as well. Standard
formats will be available for the electronic submission
of health plan enrollment information. Patients should
take comfort in the fact that their most personal
health information will be protected.
Because assisting our clients with compliance has
required enormous resources on our part, and because
the liability of noncompliance will be so enormous,
we have been addressing HIPAA administrative considerations
for some time.
Summary Plan Description (SPD) Final Regulations
Did you know that the Department of Labor passed
final regulations regarding SPD compliance? There
are a number of key provisions which must be contained
in your SPD. These final regulations are effective
as of January 20, 2001, and all SPD's must comply
with these regulations no later than the first day
of the second plan year beginning on or after January
20, 2001. Any new or updated SPD issued after January
20, 2001, but before this deadline, should comply,
and all existing SPDs must be revised to comply with
these new requirements.
Self Insured Plans' SPDs comply with these new
regulations. Does yours?
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