President Bush Signs Bill to Delay Transactions and Code Sets Compliance

On December 27th President George W. Bush signed HR 3323, a bill that will enable entities covered by HIPAA to delay compliance with the Transactions and Code Sets Rule by one full year until October 16, 2003. The president signed the bill into law without any amendments or formal statements. To qualify for the deadline extension, entities must submit a compliance plan to the Secretary of DHHS by October 16, 2002. The plan must include a budget, schedule, work plan, and implementation strategy for achieving compliance. Absent submission of a summary, covered entities--including providers, claims clearinghouses and most payers--must comply by the original Oct. 16, 2002, deadline. The bill does not require electronic transmission of claims and related transactions, with one exception-it requires most Medicare claims be submitted electronically and lists limited exclusions. HIPAA requires providers conducting electronic transactions to use national standard formats and code sets outlined in the law, and requires payers to accept without prejudice standard electronic transactions.

The compliance date of the Privacy Rule, April 14, 2003, is not affected by the signing of HR 3323. Providers, clearinghouses and most payers must comply with the privacy rule by April 14, 2003; very small payers have an additional year to comply.

Posted to HIPAAcomply 1/1/02