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CMS to issue HIPAA transaction guidance
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Following pleas from healthcare providers, software vendors and billing clearinghouses, CMS will give its first guidance on compliance with the HIPAA transaction regulations next week, the agency says.

A CMS spokesperson confirmed today that the Medicare agency will provide guidance sometime next week after numerous organizations complained to HHS Secretary Tommy Thompson that there is not enough time to complete electronic claims testing with all payers prior to the Oct. 16 compliance deadline.

The spokesperson says CMS officials are trying to figure out whether the HIPAA statute or the rule on transactions and code sets allows for any "wiggle room."

According to the spokesperson, "We have staff that's working around the clock on this."

The disclosure comes two days after a trade association representing clearinghouses and transaction software vendors sent Thompson a laundry list of concerns.

In its July 15 letter, the Washington-based Association For Electronic Health Care Transactions, complains that the inability to test electronic transactions with many healthcare payers is "the major obstacle to compliance" with the HIPAA transaction standards.

The organization asks HHS to require Medicare intermediaries to accept nonstandard claims in addition to HIPAA-formatted claims--"in essence run parallel systems," the letter says--and urge other payers to do the same for an unspecified period of time beyond the October deadline. It also wants CMS to come up with an electronic provider enrollment process or otherwise prohibit its contractors from requiring re-enrollment.

The AFEHCT letter raises many of the same concerns mentioned in a June 30 letter to HHS from the AMA, the American Medical Group Association, the Medical Group Management Association, the American Hospital Association and 35 specialty medical societies.

AFEHCT says delays in testing may lead to a "major interruption in the flow of claims submissions, processing and payments" come Oct. 16, raising the possibility that physician practices and hospitals may face a serious cash-flow crunch this fall.

Furthermore, the HIPAA rules are such that if there is an error in just one claim, payers will return an entire batch rather than break out the erroneous claim, likely delaying the payment process, according to AFEHCT.

The group says a number of payers will not let clearinghouses test electronic data interchange without first re-enrolling providers that formerly sent nonstandard claims directly to payers, and without the clearinghouses signing business associate agreements with the health plans. A February addendum to the HIPAA regulations gives covered entities with existing contracts an additional year beyond this October to finalize business-associate agreements.

These requirements are "obstacles to compliance and obstacles to testing," says AFEHCT Executive Director Tom Gilligan.

AFEHCT also complains that some health plans are adding their own "companion guides" to the official HIPAA implementation guides, effectively adding payer-specific data elements to what should be standardized code sets and forcing providers and clearinghouses to tailor claims to individual payers.

"Nowhere in the statute or the regs are the words 'companion guides' ever mentioned," Gilligan says. "But the language shows up in contracts even for testing. This is an impediment to being able to continue the flow of claims and transactions."
 
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