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HIPAA Extension Legislation Signed

January 11, 2002

On December 27, 2001, President Bush signed into law H.R. 3323, the Administrative Simplification Compliance Act (now known as Public Law 107-105). This law provides for a one year extension of the date for complying with the HIPAA standard transactions and code set requirements (to Oct 16, 2003) for any covered entity that submits to the Secretary of Health and Human Services a plan of how the entity will come into compliance with the requirements by October 16, 2003.

The plan must be submitted by October 15, 2002 and shall be a summary of

(A) An analysis reflecting the extent to which, and the reasons why, the person is not in compliance.

(B) A budget, schedule, work plan, and implementation strategy for achieving compliance.

(C) Whether the person plans to use or might use a contractor or other vendor to assist the person in achieving compliance.

(D) A timeframe for testing that begins not later than April 16, 2003.

The law also requires the Department to develop and promulgate a model compliance form for the plan by March 31, 2002, and to allow for compliance plans to be submitted electronically.

Please note that this legislation kept in place the compliance deadlines for the Privacy Rule (April 14, 2003 for all covered entities except small health plans; April 14, 2004 for small health plans).

The Department will be providing the details of the model form and submission procedures at a later date.

The law also requires that, by Oct 16, 2003, providers stop submitting paper claims and submit claims electronically to Medicare. There are waivers for certain small providers or if there is no method for electronic submission of claims available. CMS will provide further details about these requirements through the regulatory process.

You can read the enrolled version of the bill (the version passed by Congress) at: http://thomas.loc.gov/cgi-bin/query/z?c107:H.R.3323.ENR:

The Public Law version is expected to be available at the Government Printing Office shortly.

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