HIPAA News

Bush Signs Compliance Act

The Administrative Simplification Compliance Act was signed into law by President Bush on December 27, 2001. This law extends by one year the compliance date for the Transactions Rule (standard transactions and code sets for submitting health insurance claims electronically) under HIPAA from October 16, 2002 to October 16, 2003.

Under this new law, those covered providers choosing the compliance extension must submit to HHS a summary plan (indicating how compliance will be completed by October 16, 2003) prior to October 16, 2002. HHS is required to provide a model summary plan form for providers requesting the compliance extension. If a covered provider does not submit a summary plan, compliance is required by the original compliance date of October 16, 2002.

The law also requires all Medicare claims to be submitted electronically by October 16, 2003, but small providers (including physicians with less than ten full-time equivalent employees) are excluded.

NOTE: The Privacy Rule is not affected by this law; compliance by the Privacy Rule is still required by April 14, 2003.

The text of the law is available here by entering the Bill number, H.R.3323.ENR.

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