WASHINGTON, October 4, 2001 – Late yesterday, bipartisan
health care leaders called for the end of delays to the implementation of
administrative simplifications outlined in the Health Insurance Portability and
Accountability Act of 1996.
Lawmakers are concerned that savings to
health care providers, plans and consumers would not materialize if
simplification is delayed.
Ways and Means Committee Chairman Bill Thomas
(R-CA), Ranking Member Charlie Rangel (D-NY), Health Subcommittee Chairwoman
Nancy Johnson (R-CT), and Ranking Member Pete Stark (D-CA) delivered this
message in the following letter to their congressional colleagues:
We are writing to express our concerns
about recent efforts to delay administrative simplification provisions of
HIPAA. These provisions will improve administrative efficiency in the health
care industry by facilitating electronic transactions between health plans and
health care providers.
The Department of Health and Human
Services estimates these administrative simplifications will result in net
savings (i.e., savings after accounting for implementation costs) of $29.9
billion over ten years. If these provisions are delayed, public programs such
as Medicare and Medicaid, private payers, and, ultimately, all Americans will
needlessly continue to pay for the inefficiencies inherent in the current
Byzantine system.
The National Committee on Vital and
Health Statistics, an advisory body on whose recommendations HHS is statutorily
required to rely, opposes any delay in administrative simplification. In a June
29, 2001, letter to Secretary Thompson, NCVHS stated, “It is imperative
that we continue to promote the urgency of working on the implementation of
standards and not undermine current implementation efforts.”
Advocates for delay have argued that
hospitals are not prepared for administrative simplification. Yet just last
week the entire hospital industry released a letter opposing a delay, arguing
that “any legislative delay of the electronic transactions standards would
unfairly penalize hospitals and health systems that have made the significant
commitment of financial and staff resources necessary to meet the current
October 2002 compliance deadline.” This position is supported by the
American Hospital Association, the Association of American Medical Colleges,
the Cleveland Clinic Foundation, the Federation of American Hospitals, Premier,
Inc., and VHA Inc.
Indeed, any delay has
the potential of resulting in an indefinite delay as the advocates for
the status quo will inevitably invent more excuses to further delay this
sensible change when the next deadline approaches. We urge you to oppose any
delays to HIPAA administrative simplification. |
