President Clinton announced that the Department of Health and Human Services (HHS) is releasing new national standards for electronic claims for health care transactions. All health care providers will be able to use the electronic format to bill for their services, and all health plans will be required to accept these standard electronic claims, referral authorizations and other transactions. Currently different insurers require different electronic and paper forms from health care providers filing claims. Under the new regulation all electronic claims transactions must follow the single standardized format. Providers will still be allowed to use paper forms, but the simplified process is expected to encourage more electronic filing.
The new standards, described in a regulation to be published in the Federal Register, establish standard data content and formats for submitting electronic claims and other administrative health transactions. By promoting the greater use of electronic transactions and the elimination of inefficient paper forms, the administrative simplification regulations are expected to provide a net savings to the health care industry of $29.9 billion over 10 years.
The proposed regulation was required by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). In developing the proposal, HHS consulted extensively with private sector organizations and individuals and published a preliminary rule in 1998. More than 17,000 public comments on the proposal were received.
The new standards will be required to be implemented consistent with the privacy regulation that will be finalized later this year.
President Clinton announced that the Department of Health and Human Services (HHS) is releasing new national standards for electronic claims for health care transactions. All health care providers will be able to use the electronic format to bill for their services, and all health plans will be required to accept these standard electronic claims, referral authorizations and other transactions. Currently different insurers require different electronic and paper forms from health care providers filing claims. Under the new regulation all electronic claims transactions must follow the single standardized format. Providers will still be allowed to use paper forms, but the simplified process is expected to encourage more electronic filing.
The new standards, described in a regulation to be published in the Federal Register, establish standard data content and formats for submitting electronic claims and other administrative health transactions. By promoting the greater use of electronic transactions and the elimination of inefficient paper forms, the administrative simplification regulations are expected to provide a net savings to the health care industry of $29.9 billion over 10 years.
The proposed regulation was required by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). In developing the proposal, HHS consulted extensively with private sector organizations and individuals and published a preliminary rule in 1998. More than 17,000 public comments on the proposal were received.
The new standards will be required to be implemented consistent with the privacy regulation that will be finalized later this year.