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HIPAA NEWS 2004
Feds Get First Privacy Conviction- Health Care Worker Gets 16 Months in Prison
12/1/2004
A SeaTac, Wash.-based former employee of the Seattle Cancer Care Alliance has pleaded guilty to violating the HIPAA privacy rule, the first criminal conviction under the rule. In a plea agreement with the U.S. Attorney's Office in the Western District of Washington, Richard Gibson admitted to using a patient's name, date of birth and Social Security number to obtain four credit cards between October 2003 and January 2004. He then charged more than $9,100 on two of the cards for video games, home improvement supplies, clothing, jewelry, porcelain figurines, groceries and gasoline, according to federal prosecutors. Under the plea agreement, Gibson pled guilty to one count of wrongful disclosure of individually identifiable health information. He agreed to accept a sentence of 10 to 16 months, plus restitution to the credit card companies and patient. U.S. District Court Judge Richard Martinez on Nov. 5 will review the agreement and either accept the sentence or impose his own. If Martinez rejects the plea agreement, Gibson will have the opportunity to withdraw his guilty plea. Under the HIPAA privacy rule, criminal use of a patient's information for personal gain is punishable by imprisonment for up to 10 years and a fine of up to $250,000. The Seattle Cancer Care Alliance fired Gibson after the identity theft was discovered. The FBI investigated the case. A copy of the plea agreement is available on the Department of Justice Web site at www.usdoj.gov/usao/waw/. UPDATE: In the first prosecution nationally under HIPAA, US District Judge Ricardo S. Martinez on November 11, 2004 sentenced Gibson to 16 months in prison. Martinez sentenced Gibson to the maximum allowable under federal sentencing guidelines, reports the Seattle Times. Read More
AHA Recommends Immediate Modification of HIPAA Requirement Regarding Accounting of Disclosures of PHI
11/28/2004
The American Hospital Assocation (AHA) has written the Department of Health and Human Services (HHS) Secretary Tommy Thompson, urging swift modification to HIPAA's requirement that health care providers keep records of mandatory disclosures of medical information to public health authorities. In its letter of November 4, AHA cited concerns about the burden of complying with the requirement and its potential to interfere with important public health initiatives such as voluntary reporting on disease patterns and quality measures. AHA noted that the Government Accountability Office (GAO) in September urged that the rule be changed immediately. Instead of requiring providers to track individual disclosures as they occur, the rule should require that privacy notices inform patients that their information will be disclosed to public health authorities when required by law, the GAO said. AHA urged HHS to issue "without delay" a rule that is consistent with the GAO recommendation and with an earlier AHA proposal outlining the categories of disclosures the association believes should be exempted from the HIPAA requirement. AHA noted that the GAO said such a modification would ensure protection of patients' privacy "without imposing unnecessary costs or barriers to quality health care or interfering with other important public benefits."
CMS Distributes First in Series of Guidance Papers on HIPAA Security
11/27/2004
The Centers for Medicare & Medicaid Services (CMS) last week released the first in a new series of papers providing guidance on the HIPAA Security Rule. The first paper, "Security 101 for Covered Entities," provides an overview of the Security Rule and its intersection with the HIPAA Privacy Rule. The series will contain seven papers, each focused on a specific topic related to the Security Rule and designed to give HIPAA covered entities insight and assistance with implementation of the security standards. The series aims to explain specific requirements, the thought process behind those requirements, and possible ways to address the provisions. Topics planned for future papers include administrative, physical and technical safeguards; organizational policies and procedures and documentation requirements; the basics of risk analysis and risk management; and implementation for the small provider. Click Here To Access the White Paper
First US HIPAA Prosecution - Health Care Worker Sentenced to 16 Months in Prison
11/6/2004
In the first prosecution nationally under HIPAA, US District Judge Ricardo S. Martinez sentenced a Seattle-area health care worker last week to 16 months in prison for stealing the identity of a cancer patient and running up credit-card bills in his name. Martinez sentenced Gibson to the maximum allowable under federal sentencing guidelines, reports the Seattle Times. Read More
Expect More HIPAA Complaints in 2005
10/20/2004
The Southern Healthcare Administrative Regional Process (SHARP) Workgroup has looked at the more than 7,080 Privacy and 147 Transactions and Code Sets (TCS) rule complaints that have been filed up to June 2004 for HIPAA violations and it looks like there are plenty more to come, reports HealthcareITNews. Gloria Steinberg, a member of SHARP Workgroup’s advisory board, said the industry has been focusing on getting the mandatory 837 form in the correct format. However, once enough of the final rules are released and all stakeholders become better educated, she expects a plethora of HIPAA complaints to be filed in 2005. Read More
CMS Reiterates April 20 is Security Compliance Date
10/20/2004
During the last HIPAA Roundtable call focusing on the Security Standards, CMS reiterated that the compliance date for the Security Rule is April 20, 2005. There has been confusion in the healthcare industry concerning the actual compliance date. The comment section of the Final Security Rule indicates the date as April 21, 2005. However, section 164.318(a)(1) of the regulation text states April 20, 2005, is the compliance date for the initial implementation of the security standards.
Military Cites HIPAA in Limiting Details on Injured Troops
10/5/2004
HIPAA is making it difficult for military families, veterans groups and even members of Congress to get details about America's mounting war casualties in Iraq, according to the Milwaukee Journal Sentinel. Military officials are citing the law in refusing to identify soldiers wounded in Iraq or disclose details about their injuries. Army spokesman Jaime Cavazos said soldiers have the same privacy rights as civilians under HIPAA. A spokesman for Sen. Edward Kennedy (D-MA), one of HIPAA's chief architects, said the senator never intended the law to keep Americans from learning about casualties in important military missions like the current war on terrorism. Read More
HIPAA Enforcement Rule Extended
9/15/2004
The Department of Health and Human Services has published a notice extending by one year the interim final rule establishing enforcement procedures for the HIPAA administrative simplification provisions. The department published the interim rule on April 17, 2003, and it was set to expire on Sept. 16, 2004. Now, the interim rule, covering the HIPAA privacy, security, and transactions and code sets rules, will continue until Sept. 16, 2005. “Notwithstanding this extension, HHS fully expects to issue the final rule that will result from the forthcoming rulemaking as soon as possible rather than at or near the new Sept. 16, 2005, expiration date," according to the notice. "However, a one-year extension should provide HHS with a period sufficient to avoid another extension, should unexpected circumstances delay the regulatory development process.” In April 2003, HHS called the interim final rule “the first installment” of a HIPAA enforcement rule to be published later. The interim rule established rules of procedure for imposing civil penalties on entities that violate standards for the format and protection of health information under HIPAA’s administrative simplification provisions. The penalties include civil fines or exclusion from federal health programs. The final enforcement rule will include, among other provisions, a regulatory definition of what constitutes a violation and how the penalties will be determined. The Department published the notice of extension Sept. 15 in the Federal Register. Click here to read it.
Hospital Janitor Offered $1000 to Access Pres. Clinton's Medical Records - 17 Employees Suspended
9/12/2004
Staffers at the hospital where Bill Clinton had heart surgery recently were disciplined for trying to access his private medical files, reports the New York Daily News. Columbia Presbyterian Medical Center suspended 17 workers – including a doctor, several supervisors, a lab technician and a number of clerical employees – for attempting to view the computer records. Hospital spokeswoman Myrna Manners would not confirm staffers tried to breach Clinton's records but said there is a "zero-tolerance policy" on protecting patient privacy that extends to the hospital's most senior staff. Read More
Fed Govt Explains How Privacy Rule Relates to Freedom of Information Laws
8/26/2004
The Department of Health and Human Services' (DHHS) Office for Civil Rights (OCR) has issued guidance on how the HIPAA Privacy Rule relates to state public records laws, also known as open records or freedom of information laws, and which provide for public access to government records. In Summary, if a state agency is not a "covered entity," it is not required to comply with the HIPAA Privacy Rule. The situation gets complicated, however, if a state agency is a covered entity. . Read More
New Security Rule FAQs posted on CMS Web site
8/17/2004
CMS Posts a Dozen New Security Rule FAQs The Centers for Medicare and Medicaid Services (CMS) yesterday posted on its web site 12 new and one updated frequently asked questions with answers regarding the HIPAA Security Rule. hCheck 'Em Out
Yankees' First Baseman Jason Giambi Not Obliged to Disclose
8/14/2004
Medical Experts Say Yankees' First Baseman Not Obliged to Disclose Experts in medical law and ethics say Yankees' All-Star first baseman Jason Giambi is entitled to his privacy and under no obligation to tell fans details about the benign tumor that he blames for his health problems this season, reports Newsday. But the same experts said HIPAA does not govern baseball teams and does not prevent Yankees general manager Brian Cashman from discussing the tumor. Cashman had pointed to the HIPAA privacy provisions when he refused to answer reporters' questions about the location of the tumor.
Fed-up Hospitals Defy Patching Rules
8/12/2004
Network World Fusion reports that amid growing worries that Windows-based medical systems will endanger patients if Microsoft-issued security patches are not applied, hospitals are rebelling against restrictions from device makers that have delayed or prevented such updates. Many hospital executives view the failure to apply the security patches as a possible violation of HIPAA. Read More
Government Issues New Privacy Rule Fact Sheets for Consumers
7/19/2004
The Department of Health and Human Services' Office for Civil Rights (OCR) has issued two new Fact Sheets which provide an easy-to-understand overview of what the Privacy Rule means to consumers. The first Fact Sheet, entitled, "Privacy and Your Health Information," is a general overview of the Rule, explaining that the Privacy Rule gives individuals rights over their health information, sets rules and limits on how information can be used and disclosed, and requires covered entities to take steps to protect health information. The second Fact Sheet, "Your Health Information Privacy Rights," focuses on each of the privacy rights individuals have under the Privacy Rule.
Summer 2004 Results of HIPAA Compliance Survey Not Inspiring
7/25/2004
Phoenix Health Systems' HIPAAdvisory has published their latest quarterly survey of HIPAA compliance. Although the news is bleak the survey really doesn't represent smaller health care organizations. Only 15% of the respondents had 10 or fewer physicians in the organization. Key findings include:

HIPAA Transactions and Code Sets: Only 65% of Providers, 62% of Payers, and 64% of Clearinghouses indicated that they are currently fully compliant. Less than half of Providers and Payers are conducting all of the standard transactions required for their business functions. Of the covered entities not yet compliant, 68% have completed internal testing, but only 27% have completed external testing. Only 50% of Providers and 46% of Payers have completed other TCS remediation activities not related to testing. Half (50%) of Providers and 63% of Payers indicated that there are transactions which their information systems are capable of producing, but that are not being conducted due to the inability of their trading partners to accept/transmit them. When asked the reason for their lack of full TCS compliance, most covered entities cited their trading partners' lack of compliance and coordination as causes. Approximately 40% of Providers, 36% of Payers, and 51% of Vendors feel that CMS should maintain its Contingency Plan for at least another three months.

HIPAA Privacy: Twenty-two percent (22%) of Providers and 9% of Payers reported that they remain non-compliant with the Privacy Rule, more than a year after its effective date (April 2003). Even among "compliant" organizations, gaps remain in certain areas, such as establishing Business Associate Agreements and monitoring internal Privacy compliance. Sixty-four percent (64%) of Provider and 58% of Payer respondents reported their organizations had experienced between one and five privacy breaches in the first six months of 2004.

HIPAA Security: Initiatives for Security Rule compliance are moving slowly – across the industry, the majority of respondents reported their organizations will not be fully compliant until 2005. Providers (87%), Payers (91%), and Clearinghouses (90%) indicated they will be compliant on or before the deadline. Thirty-one percent (31%) of total Providers, Payers, and Clearinghouses responded that their organizations had experienced at least one data security breach in the first six months of 2004.
Rep. Markey Introduces Bill to Block Offshoring of Consumers' Personal Data
6/4/2004
Representative Edward Markey (D-MA), a senior Member of the House Energy and Commerce Committee, and the Co-Chair of the Congressional Privacy Caucus, recently introduced the “Personal Data Offshoring Protection Act of 2004” (H.R.4366). The bill prohibits companies from transferring personal information, including medical records, to any person outside the US without notice and consent. Rep. Markey said, “The off-shoring of high-tech, call center, data processing and analysis, and other technology-dependent service jobs poses a very real danger to the security, confidentiality and integrity of personal financial, medical, and other sensitive information." Senator Hillary Clinton (D-NY) recently introduced similar legislation in the Senate. Specifically, Markey's bill includes:
  • Requires any business enterprise that transfers personally identifiable information regarding a US citizen, such as the citizen’s name, address, financial information, medical records, or other personal information to first provide prior notice to the citizen;
  • Requires such businesses to allow consumers to block (or “opt out”) of information transfers to any countries that the Federal Trade Commission (“FTC”) has determined provide adequate and enforceable privacy protections, such as the European Union (EU);
  • Requires such businesses to obtain the prior consent of the consumer (or “opt in”) before personal data can be sent to other countries that the FTC determines do not provide adequate and enforceable privacy protections;
  • Bars companies from refusing to provide goods or services to consumers who elect to exercise their “opt out” or “opt in” consent rights, or from charging consumers more if they chose to exercise such rights;
  • Provides for enforcement of the bill’s restrictions by the FTC by defining violations of the bill as a violation of the Federal Trade Commission Act’s prohibition on unfair and deceptive acts or practices, thereby allowing the FTC to seek injunctions against violators and to impose financial penalties of up to $11,000 per violation;
  • Provides for additional civil remedies against violations, including authorization to the state attorney’s general to bring civil actions to enjoin violations and impose monetary penalties of actual monetary losses or up to $10,000 per violation, whichever is greater; and,
  • Provides a citizen whose privacy rights are violated with a private right of action to sue a business who has violated the act for actual monetary damages or up to $10,000 per violation, whichever is greater.
Kennedy Introduces Electronic Health Records Bill
5/14/2004
Sen. Edward Kennedy (D-MA) introduced a bill (S. 2421) yesterday that would require healthcare providers to adopt electronic records and claims processing by 2011 or have their reimbursements reduced, reports iHealthBeat. The Health Care Quality Modernization, Cost Reduction and Quality Improvement Act focuses on improving the healthcare system through the use of information technology (IT), results-based reimbursement, quality improvement, and disease prevention. Read More
Kennedy Introduces Electronic Health Records Bill
5/14/2004
Sen. Edward Kennedy (D-MA) introduced a bill (S. 2421) yesterday that would require healthcare providers to adopt electronic records and claims processing by 2011 or have their reimbursements reduced, reports iHealthBeat. The Health Care Quality Modernization, Cost Reduction and Quality Improvement Act focuses on improving the healthcare system through the use of information technology (IT), results-based reimbursement, quality improvement, and disease prevention. Read More
Two-Week Payment Penalty Threatens as Claims Deadline Looms
5/13/2004
Tens of thousands of doctors will soon see their Medicare payments postponed for two weeks if they don't begin meeting HIPAA transactions and code sets standards, reports American Medical News. The American Medical Association (AMA) is advising physicians to contact their software vendors and clearinghouses to check whether those firms are submitting electronic claims that conform to the rules. In a recent communication, the Centers for Medicare & Medicaid Services (CMS) recommends physicians put pressure on their vendors to get compliant or consider switching to a new company. Beginning July 1, anything received in legacy format will be treated like paper claims and reimbursed in no sooner than 28 days. HIPAA-compliant electronic claims, however, are reimbursed after 14 days. As of mid-April, nearly 80% of electronic claims sent to Medicare were received in HIPAA-standard format, leaving the remaining 20% of electronic claims to be hit by the slowdown. Read More
Many Health Care Organizations Remain Non-Compliant With The Security Rule
5/3/2004
In recognition of the HIPAA Security Rule pre-anniversary deadline on April 21, 2004, the American Accreditation HealthCare Commission (URAC) released a case study report examining the state of preparedness in the health care industry in complying with hipaa'S Security Rule. The report identifies four key stumbling blocks that hamper the ability of organizations to satisfactorily meet the demands of the Rule, and finds many health care organizations remain noncompliant. URAC's report identifies the following as barriers to compliance: A) Incomplete or inappropriately scoped risk analysis efforts. For example, does the health care organization understand whether or not patient data is at risk of compromise on their systems? B) Inconsistent and poorly executed risk management strategies. For example, does the health care organization actively address the technical issues and employee practices that affect security?C) Limited or faulty information system activity review. For example, does the health care organization actively collect data on how its systems and employees are performing? D) Ineffective security incident reporting and response. For example does the health care organization even detect when patient data has been compromised (e.g., stolen by an unauthorized person) and how do they deal with that compromise? Read the Report
Clinton Wants Increase in Privacy Regulations For Hospitals
4/29/2004
Sen. Hillary Clinton, D-NY, is looking to attach an amendment to an important corporate tax bill -- the foreign sales corporation/extraterritorial income bill -- that would increase the privacy regulations hospitals face, in addition to rules already imposed by the Health Insurance Portability and Accountability Act. The amendment would add new privacy regulations over and above HIPAA, including: requiring foreign nations to attain privacy certification from the Federal Trade Commission before businesses in those countries can handle medical information from U.S. health care providers; requiring hospitals to obtain written consent from patients if the nation isn't FTC certified; and allowing patients a private right of action to sue a hospital if there is a breach of privacy. The FSC/ETI bill is likely to be on the Senate floor next week.
President Bush Unveils Major Health Care IT Initiatives
4/27/2004
President Bush unveiled several major health care tech initiatives at the American Association of Community Colleges Annual Convention in Minneapolis yesterday. In his speech, Bush said that innovations in electronic medical records and the secure exchange of medical information will help transform health care in America - improving health care quality, reducing health care costs, preventing medical errors, improving administrative efficiencies, reducing paperwork, and increasing access to affordable health care. To achieve the President's goal of assuring that most Americans have electronic health records (EHR) within 10 years, the federal government is taking the following steps to urge coordinated public and private sector efforts that will accelerate broader adoption of health information technologies (HIT): The Department of Health and Human Services will try to finish the uniform standards for electronic health records by the end of this year. Money has been set aside to encourage demonstration projects that will show health care providers the need to modernize their systems. The position of National Health Information Technology Coordinator has been created within the Department of Health and Human Services to coordinate these efforts with hospitals and medical groups. The federal government will take the lead and create the incentives for health care providers involved with the government to use medical records. Bush also appeared at the Department of Veterans Affairs Medical Center today in Baltimore to "talk about how to make sure the government helps the health care industry become modern in order to enhance the quality of service, in order to reduce the cost of medicine, in order to make sure the patients, the customer is the center of the health care decision-making process."
2004 HIPAA Privacy & Security Compliance Survey Completed
4/14/2004
April 14, 2004 marked the first anniversary of the implementation of the Health Insurance Portability and Accountability Act (HIPAA) final privacy rule. This long-awaited regulation represented a critical step in the development of national standards for the use and disclosure of personal health information. Many in the health care industry supported its development and recognized its importance in protecting the privacy, confidentiality, and security of health information. A survey was conducted by the American Health Information Management Association (AHIMA) to assess the current state of HIPAA privacy and security compliance within the health care industry. Respondents to the survey included privacy and security officers, those functioning as privacy or security officers without the formal titles, and those who served on the HIPAA privacy and security teams or committees for their organization. Read the Survey
NCVHS Recommends Changes to Privacy & Claims Attachment Rules
4/1/2004
A coalition of health care providers, clearinghouses, and vendors, including the American Hospital Association (AHA), yesterday urged the Centers for Medicare & Medicaid Services (CMS) to develop a rational plan for achieving administrative simplification under HIPAA, reports AHANews. In a statement to the National Committee on Vital and Health Statistics (NCVHS), the HIPAA Implementation Working Group urged that all payers maintain contingency plans for HIPAA claims processing during the transition to full compliance with the Transactions and Code Sets (TCS) standards and not reject or delay claims because data not needed for adjudication is missing. Meanwhile, NCVHS has issued recommendations for changes in the HIPAA privacy rule and forthcoming claims attachment rule.
Medicare Changes Data Requirements
3/31/2004
Health Data Management reports that CMS, the Centers for Medicare and Medicaid Services, has changed certain data elements needed to adjudicate Medicare claims submitted on or after July 6, 2004. CMS has instructed its fiscal intermediary contractors to reject claims from Medicare providers not complying with the new data requirements. The changes will enable the Medicare program to comply with the HIPAA implementation guides for the 837 claim transaction and to resolve coordination of benefit (COB) data sharing issues found during testing. Changes include:1) Medicare now will require certain data elements that are not needed for Medicare claims adjudication but are required under HIPAA. 2) Data that Medicare previously allowed but is not permitted by HIPAA will result in claim rejections. 3) Certain data Medicare now edits only for syntax will be edited for content and contractors will reject claims if the data is not valid. Click here to read the story. Click here for a copy of the change request form sent to Medicare contractors. (Look for CR 3031 in the CR NUM column on the right, then click on that file on the left.) To get the educational brochure for providers, click here then click on MM3031.
HIPAA's Privacy Rule Does Not Create New Physician - Patient Privilege
3/26/2004
In the case of Northwestern Memorial Hospital v. Ashcroft Case No. 04-1379, the US Court of Appeals for the 7th Circuit ruled today that the HIPAA Privacy Rule does not create a new federal physician - patient privilege. In the ongoing controversy challenging the constitutionality of the Partial-Birth Abortion Act, the court determined that Northwestern Memorial Hospital was not required to comply with the Justice Department's subpoena for medical records on abortion patients. In doing so, it rejected the lower court's reasoning that HIPAA imposed state physician-patient privileges on federal suits. According to Joy Pritts, JD, of Georgetown University's Health Policy Institute, the court of appeals based its decision on the balancing of interests required by the Federal Rules of Civil Procedure and determined that the burdens of production (including patients' sensitivity to having their records disclosed to the government) outweighed the value that the information would contribute to the case. The dissenting judge, relying on the HIPAA Privacy Rule, stated that the records should be produced because identifying information would be redacted. Northwestern Memorial Hospital issued the following statement in response to the ruling: "Although Northwestern Memorial Hospital has taken no position in the underlying national lawsuit challenging the ban, we had a duty under the law to assert our patients' privacy interests. Therefore, our hospital acted vigorously to protect our patients' confidential health information from disclosure. Both the United States District Court and Court of Appeals made a fundamental finding that the significant intrusion into patient privacy outweighed the Government's need for these records to prove its case. We are pleased with this result and the reassurance it provides to our patients."
A Lesson in Patient Privacy Rights
3/16/2004
The California Consumer Health Care Council has sued the Kaiser Foundation over what it says is inappropriate disclosure of private medical records. The council contends that when Kaiser learns of a suit or potential suit by a patient, its legal department opens and studies that patient's private medical records without notifying the patient. This alleged review by Kaiser's legal department is inappropriate, said the council, because Kaiser's legal employees have no role in the patient's health care. Read the Story
CMS Slows Legacy Claims Payments To Encourage HIPAA Compliance
3/1/2004
On Friday Feb. 27, 2004 CMS (the Centers for Medicare & Medicaid Services) instructed Medicare carriers and fiscal intermediaries to pay electronic claims that are not HIPAA compliant no earlier than 27 days after receipt. Medicare currently pays electronically submitted claims no earlier than 14 days after receipt. CMS ordered the slowing down of payments on "legacy" claims as "a measured step toward ending the contingency plan completely." The new payment structure is intended to encourage compliance with HIPAA's Transactions and Code Sets regulations as soon as possible. The implementation date is July 6, 2004. Read the "Modification of CMS' Medicare Contingency Plan for HIPAA Implementation" Program Transmittal from CMS
Texas Says State Public Info Law Overrides HIPAA
2/16/2004
Texas Attorney General Greg Abbott has ruled that the state's Public Information Law takes precedence over the HIPAA Privacy Rule, according to a published report in the Dallas - Ft. Worth Star Telegram. According to the article, his decision means Texas media outlets and individuals will have access to public information that some hospitals and authorities have declined to release. According to Abbott, "In Texas, government records are presumed open unless a specific exception applies. HIPAA is not an exception to the rule of openness in the state of Texas." Read the Story.
WebMD Reportedly Not HIPAA Compliant
2/15/2004
Health Data Management reports the American Medical Association (AMA) and seven other medical societies sent a letter in January to WebMD voicing their concerns about the vendor's claims processing. WebMD has had difficulties handling HIPAA-compliant transactions, according to the physician associations. The letter, sent to WebMD CEO Roger Holstein and HIPAA enforcement staff at the Centers for Medicare and Medicaid Services (CMS), states that claims submitted to WebMD in a HIPAA-compliant format for processing are often resulting in delayed or denied payments to physicians. Read the Story.
WebMD Reportedly Not HIPAA Compliant
2/15/2004
Health Data Management reports the American Medical Association (AMA) and seven other medical societies sent a letter in January to WebMD voicing their concerns about the vendor's claims processing. WebMD has had difficulties handling HIPAA-compliant transactions, according to the physician associations. The letter, sent to WebMD CEO Roger Holstein and HIPAA enforcement staff at the Centers for Medicare and Medicaid Services (CMS), states that claims submitted to WebMD in a HIPAA-compliant format for processing are often resulting in delayed or denied payments to physicians. Read the Story.
Hearings to be Held on Impact of Privacy Rule on Banks, Police, and Schools
2/14/2004
The National Committee on Vital and Health Statistics (NCVHS), an advisory body to the Secretary of Health and Human Services (HHS), will be holding a subcommittee meeting on Feb. 18 and 19 to receive information on the implementation of the HIPAA Privacy Rule. The Subcommittee on Privacy and Confidentiality will hear about the impact of the regulation on banking, law enforcement, and schools. Representatives of affected groups will provide information about how the regulation has affected the level of privacy and confidentiality for protected health information (PHI), best practices for implementation of the regulation, and information that might help to identify and resolve barriers to compliance.
Camera Phones Raise Privacy & Security Concerns
2/12/2004
The January 2004 issue of PC World magazine reports that by 2007, it is predicted 51 million out of over 110 million cell phones will have digital camera technology. The same size as regular cell phones, camera phones can snap photos while users appear to make calls. Daniel Solove, a law professor specializing in privacy law, says a camera phone's immediacy alone does not violate privacy laws, but there are limits. Eventually, camera phones may be automatically disabled when owners enter sensitive places, like hospitals or banks. According to Alan Reiter, a wireless computing consultant who follows picture-phone trends in his Camera Phone Report, "corporations and organizations that have legitimate security concerns should ban camera phones as well as other devices that could compromise security."
health care Industry Remains Unready for TCS Compliance
2/2/2004
According to a survey co-sponsored by the health care Information Management and Systems Society (HIMSS) and Phoenix Health Systems, the health care industry is “far from prepared” to conduct most HIPAA standard transactions. The survey polled 631 health care executives. health care providers are closer to compliance than other entities, according to the findings of the survey, which were presented on Jan. 27 in testimony before the WEDI Public Hearing on Implementation of HIPAA Regulations in Washington, DC. D’Arcy Guerin Gue, Executive Vice President of Phoenix Health Systems, represented and testified for her organization and HIMSS at the hearing.
“The objective of converting to standardized Transactions remains hampered by poor communications between covered entities and their trading partners, confusion over specifications, and inability to complete testing,” said Guerin Gue. “Considering the slow progress reported since the Fall 2003 Survey, it is unlikely that we will see industry-wide compliance within the near future.”
The survey results presented as testimony during the WEDI public hearing represent only some of the Winter 2004 US health care Quarterly Industry HIPAA Compliance Survey results. The complete results of the survey will be presented at the Annual HIMSS Conference & Exhibition, taking place February 22-26, 2004 in Orlando, FL. Click here to read the testimony.
DHHS Publishes Final Rule Adopting the National Provider Identifiers (NPI)
1/23/2004
This Rule becomes effective on May 23, 2005. Providers need not take any action to apply for NPIs until that date. The compliance date for all covered entities except small health plans is May 23, 2007; the compliance date for small health plans is May 23, 2008. When the NPI is implemented, covered entities will use only the NPI to identify providers in all standard transactions. Legacy numbers (e.g., UPIN, Blue Cross and Blue Shield Numbers, CHAMPUS Number, Medicaid Number, etc.) will not be permitted. Providers will no longer have to keep track of multiple numbers to identify themselves in standard transactions with one or more health plans. (The Taxpayer Identifying Number may need to be reported for tax purposes as required by the implementation specifications.)

All entities who meet the definition of "health care provider" at 45 CFR 160.103 are eligible for NPIs. Providers who are "covered entities" are required to obtain and use NPIs. Providers who are not covered entities may also apply for NPIs. An NPI is expected to last indefinitely; it will not change over time.

Entities who never furnish health care (such as taxi services) are not eligible to be assigned NPIs: they do not meet the definition of "health care provider" and any claims they submit to a health plan would not be "health care" claims and thus would not be subject to HIPAA requirements.

In certain situations, it is possible for "subparts" of organization health care providers (such as hospitals) to be assigned NPIs. These subparts may need to be assigned NPIs in order to conduct standard transactions on their own behalf or to meet regulations that, as an example, may require them to have a billing number in order to be paid by Medicare. The Final Rule requires covered providers to determine if they have subparts that may need NPIs and, if so, to obtain NPIs for the subparts or require the subparts to obtain their own NPIs. (This issue does not pertain to providers who are individuals.)

The NPI is all numeric. It is 10 positions in length (9 plus a check-digit in the last position). It is easily accommodated in all standard transactions. It contains no embedded information about the provider that it identifies. At the current rate of provider growth, NPIs will be available for 200 years.

Providers will be assigned NPIs upon successful completion of an application form. The form can be submitted on paper or over the Internet. Once a provider has been assigned an NPI, the provider must furnish updates to its data within 30 days of any changes.

The National Provider System, being built under a Centers for Medicare & Medicaid Services (CMS) contract, will process the applications and updates, ensure the uniqueness of the provider, and generate the NPIs. It will also produce reports and information based on requests from the health care industry and others.

A single entity, known as the enumerator, and performing under a CMS contract, will operate the NPS. The enumerator will receive applications and updates from providers. The enumerator will assist providers in completing applications, in furnishing updates, and will be responsible for resolving problems and answering questions. The enumerator will notify the providers of their NPIs. The enumerator will also process requests for, and disseminate information containing, providers' NPIs. The HHS will prepare a Federal Register Notice describing the NPS data dissemination policy.

Providers who are covered entities may begin applying for NPIs on May 23, 2005, the effective date of the Final Rule. There will be an extremely heavy workload continuing for some time after that date as the NPS processes applications and assigns NPIs to existing providers who are required to obtain and use NPIs by the compliance date. Providers who are not covered entities, but who wish to apply for NPIs, may indeed do so, but should wait at least 1-2 years after the effective date before applying.

Information about NPI implementation, including information on how to apply for NPIs, will be made available to the health care industry by CMS closer to the effective date. Click here to read the Final Rule.
WEDI Public Hearing on HIPAA Implementation Issues
1/15/2004
The Workgroup for Electronic Data Interchange (WEDI), an authorized advisor to the Secretary of the Department of Health and Human Services (HHS), will be holding a special public hearing on January 27 in Tampa, FL, to gather information from the health care industry on HIPAA implementation. The hearing will allow organizations to present their concerns and recommendations regarding implementation of the HIPAA electronic transactions and code sets (TCS) regulation and other pending regulations. No registration is required for the free event to be held from 8 AM to 5 PM EST at the Grand Hyatt Tampa Bay. WEDI has formed a Task Group to collect, analyze, and prepare recommendations to the Secretary to represent the industry perspective. WEDI is seeking input from health care industry representatives on the following:
  • The readiness of Health Plans, Providers, Clearinghouses for HIPAA Compliance as well as business associates and vendor partners;
  • Information regarding X12N transaction data content concerns;
  • Sequencing and strategies for the implementation of future HIPAA regulations; and
  • Obstacles and issues the health care industry has been dealing with in achieving compliance.
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