HIPAA extension becomes law

A one-year extension to the standard transactions and code set requirements of the Health Insurance Portability and Accountability Act (HIPAA) became law last month when President Bush signed the U.S. Administrative Simplification Compliance Act (H.R. 3323). Now known as Public Law 107-105, the legislation extends the deadline for complying with the rules to October 16, 2003.

In order to receive the extension, the law requires covered healthcare facilities to submit a plan to the Secretary of Health and Human Services no later than October 15, 2002, describing how the facility will achieve compliance by the new deadline.

This plan must include an analysis explaining why the facility is not in compliance, and provide a budget, schedule, work plan, and implementation strategy for achieving compliance. The letter must also state whether the facility plans to use an outside contractor or other service provider to assist the entity in complying.

Testing of the new plan must begin no later than April 16, 2003. By March 31, 2003, the Centers for Medicare and Medicaid Services (CMS) must provide a method for facilities to submit their plans electronically, the agency said.

Small healthcare providers will have until April 14, 2004 to comply. Information on the final bill (H.R. 3323 ENR) can be found at Thomas legislative information on the Internet.

By AuntMinnie.com staff writers
January 10, 2002

Related Reading

U.S. House passes HIPAA extension, December 5, 2001

U.S. Senate delays HIPAA transaction and code set standards, December 4, 2001

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