Health Insurance Portability and Accountability Act of 1996 (HIPAA)
In 1991, the Secretary of the Department of Health and Human Services began a forum to discuss the challenges of reducing administrative costs within the health care industry. The discussions resulted in the development of a proposed law that addressed Privacy, Security and Transactions regarding protected health information. On August 21, 1996, President Clinton signed the law that became the Health Insurance Portability and Accountability Act (HIPAA). Supporters of Electronic Data Interchange (EDI) projected large cost savings by replacing paper-based transactions with standard electronic transactions.
The Health Insurance Portability and Accountability Act (HIPAA) mandates the standardization of EDI formats for health care data transmission, which includes claims, eligibility, remittance, and claim status inquiries. HIPAA regulations replace the UB92 and HCFA 1500 Claims formats with ASC X12N 837 Transactions.
With a strong commitment from the United States Department of Health and Human Services, the Standard Transactions and Code Sets final rule for the Administrative Simplification provision of HIPAA was published on August 17, 2000. The rule specifies for standard health care transactions to allow health care providers, health care plans, and clearinghouses to exchange appropriate information quickly and accurately.
The Health Insurance Portability and Accountability Act (HIPAA) mandates the standardization of EDI formats for health care data transmission, which includes claims, eligibility, remittance, and claim status inquiries. HIPAA regulations replace the UB92 and HCFA 1500 Claims formats with ASC X12N 837 Transactions.
With a strong commitment from the United States Department of Health and Human Services, the Standard Transactions and Code Sets final rule for the Administrative Simplification provision of HIPAA was published on August 17, 2000. The rule specifies for standard health care transactions to allow health care providers, health care plans, and clearinghouses to exchange appropriate information quickly and accurately.