This is a cross post from HIPAA Alert.  I do not normally cross post but felt
that there are many on EDI-L that could use this information and become part
of the HIPAA discussion on "HIPAAlive".  This is a U.S. Legislative Issue in
the Healthcare Health Insurance sectors.




Jonathan Showalter
Omaha NE


------------------( Forwarded letter 1 follows )---------------------
Date: Tue, 19 Sep 2000 17:55:59 -0400
To: HIPAAlert.Newsletter[hipaalert]@lists.hipaalert.com
From: [EMAIL PROTECTED]
Sender: [EMAIL PROTECTED]
Reply-To: [EMAIL PROTECTED]
Subject: [hipaalert] HIPAALERT Volume 1, No. 10

=================================================================

H I P A A L E R T           Volume 1 No. 10        September 19, 2000

>> From Phoenix Health Systems -- HIPAA Knowledge...HIPAA Solutions <<

=================================================================


HIPAAlert is published monthly in support of the healthcare
industry's efforts to stay on top of issues related to HIPAA security
and privacy. Current subscribers total over 7000. Do you have
interested associates? They can subscribe free at:
http://HIPAAlert.com

IF YOU LIKE HIPAALERT, YOU'LL LOVE HIPAAdvisory.com, the most
comprehensive HIPAA resource site on the web. Visit:
http://www.HIPAAdvisory.com

=================================================================

T H I S  I S S U E

1.  From the Editors: Fall Brings New HIPAAfeatures!
2.  HIPAAliteracy: When the Going Gets Tough
3.  HIPAAnews: New HIPAA Cost Estimates, Update on Privacy Rule, & more
4.  HIPAAdvisor: Transactions and Code Sets
5.  HIPAAlinks: Off-the-Beaten-Track to Privacy and Security


=================================================================

1 /   F R O M  T H E  E D I T O R S:


This Fall the HIPAAlert / HIPAAdvisory.com staff will begin
serving up two exciting new service features:

FIRST, our regular quarterly HIPAA survey will go online
and interactive! Beginning with this month's HIPAA Progress Survey,
you will be able to quickly complete a database-driven interactive
questionnaire with no FAX muss or E-mail fuss.  The Survey will be
online at HIPAAdvisory.com, beginning this Thursday, September 21.

Based on your recommendations, we've extensively customized the
questionnaire. All participants will be asked to complete some broad,
basic questions. In addition, depending on whether you represent a
payor, provider, vendor or a clearinghouse, you will be asked to
answer several questions specific to your role in healthcare.
The survey should take about 5 minutes to complete.

Once again, your participation will be invaluable in tracking the
healthcare industry's efforts towards HIPAA compliance. Deadline for
completion of the Fall survey is Friday, October 6. Results
will be published in our mid-October issue of HIPAAlert.

Once the new survey is online, we'll send you a quick reminder
to participate, along with directions.

SECOND, our staff is putting the final touches on our new
"HIPAAnotes," a unique E-mail HIPAA knowledge tool that will
be published weekly, beginning in October. The free "HIPAAnotes"
will be a quick E-mail page of 2 or 3 concise knowledge bytes
culled from the megabytes of HIPAA information we've developed at
HIPAAdvisory.com.

Achieving internal HIPAAwareness continues to be a challenge for
most healthcare enterprises. Designed to be conveniently passed on
to anyone with a HIPAA "need to know," HIPAAnotes will help
compliance staffs regularly and painlessly keep their associates
aware of HIPAA and its implications.

Stay tuned for more on HIPAAnotes!


Diane Boettcher, Editor
[EMAIL PROTECTED]

D'Arcy Guerin Gue, Publisher
[EMAIL PROTECTED]


=================================================================

2 / H I P A A l i t e r a c y...When the Going Gets Tough

In HIPAAlert's last industry survey, no one was surprised that over 50%
of healthcare executives had little if any knowledge of HIPAA or its
implications. And 75% of provider respondents said that HIPAA hadn't
yet hit their managers' radar screens. With the recent announcement
of HIPAA's first final rule, our Fall quarterly survey may show that
more provider leaders have begun to tune in. Nevertheless, continuing
reader comments (and often, complaints) suggest that a surprisingly
staunch cadre of "HIPAA-illiterates" remains alive and well.

At Phoenix, we've had to address this reality with several clients, and
chances are you have too, within your own organization. As a result, we
and many of you have developed -- sometimes just stumbled upon --
effective tactics that address this stubborn knowledge gap.

Here are some of the best:

1.  THE HIPAA CHAMPION

    > Find and cultivate an internal champion, preferably on the
      Executive team, preferably well-liked and respected, who is NOT
      in Information Systems or Compliance. Send him or her to some
      variation of "HIPAA school". Then, make sure your HIPAA
      compliance leader enlists the champion's consistent, visible
      support of the organization's HIPAA awareness efforts.

2.  THE FORMAL HIPAA PRESENTATION

     > Preferably earlier rather than later, every healthcare
       enterprise needs to call at least one formal, IN-HOUSE HIPAA
       education meeting with the entire executive and management team.
       Think of it from a "The first shot is probably your best shot"
       perspective. Invest serious time, talent, and if necessary,
       money in your planning and preparation, making sure that the
       content is customized to your organization's circumstances.
       Sending staff outside to public, outside conferences is useful,
       but not a replacement for in-house initiatives. Consistent
       knowledge and management buy-in across your enterprise can only
       be developed from within.

     > Make sure your initial executive and management presentations
       address HIPAA from the "CO" perspective. Think: bottom line,
       corporate strategic plans, ROI, priorities. Introduce positive
       implications (i.e., likely cost reductions in conducting
       transactions, increased systems and procedures standardization
       across the enterprise, etc.)

     > Choose your designated speaker wisely. Don't let a "techie" or
       security buff lead early presentations, even if he or she is the
       only person in the organization who understands HIPAA. Your
       audience will probably not understand the "tech talk" -- and may
       assume a credibility-threatening bias. If no internal staffer
       can knowledgeably and effectively do the job, bring in an
       outside speaker.

       Many healthcare consulting firms and others offer free or
       low-cost HIPAA presentations. Insist up front that their talk
       won't be a 1-hour commercial for their services. (Instead,
       tell them they may include only one slide on their company, and
       offer 30 minutes one-on-one with you before the presentation.)

       Once the outside speaker conducts the HIPAA tutorial, it's time
       for you and your champion to take the podium to cover HIPAA's
       implications for your particular organization. Incidentally,
       there's a lot of chaff shooting up next to the wheat in the
       HIPAA consulting field. You should require any would-be speaker
       to detail his or her HIPAA-related expertise. If in doubt, or
       if the firm is a security or MIS "expert" but has little
       experience in healthcare, ask for a personal pre-presentation
       -- or look elsewhere.

     > Avoid letting a major HIPAA presentation become part of a larger
       meeting agenda. People tune out perceived "bad" news,
       particularly when invited to focus on other issues at the same
       time.

     > Initial presentations should be between 60 and 90 minutes, plus
       time for final questions. Anything less won't begin to address
       the breadth and depth of the issues, and likely will leave
       participants confused, bored -- or worse, believing HIPAA is "no
       big deal" or "not our problem." Anything longer, for the
       first-time HIPAA audience, is probably too much to absorb.

     > Apply doses of humor to sweeten the "bitter pill" HIPAA may be
       for members of your management. For example, we often distribute
       "HIPAApots"-- mugs with HIPAA and our HIPAAdvisory.com hippo
       logo splashed across them -- before our presentations. Then we
       ask participants to describe their own levels of HIPAA knowledge
       using their HIPAApots. Are they half full, overflowing, "too hot
       to touch," or ?? You name it, we've heard it -- even from our
       most staid attendees. The atmosphere lightens up, the speaker
       gathers intelligence about the audience's needs, and the
       biggest bonus: the participants receive permanent HIPAA
       reminders with their daily morning coffee.

     > More tips for formal presentations: DO use slides with
       pass-outs, and take the time to include grabber graphics...Also,
       hold questions till the end, or you'll become derailed by
       challenges and objections. Finally, make sure the speaker is
       able to address questions that are sure to come: "Is HIPAA
       really real?" How much is this going to cost?" "Who's going to
       do the work?" "Why not remain incompliant, and just pay the
       penalties?" "Can we wait until all the rules are final?"

3. THE ONLINE SOAPBOX

     > If your organization has an intranet, use it. Set up a HIPAA
       page, and add news and tutorial items / links regularly. Make
       friends with the intranet's webmaster, so you can get top
       billing from the Main page. Incidentally, several HIPAAlert
       subscribers re-print part or all of each issue on their
       intranets; you're welcome to do the same, if you request
       permission and make appropriate attributions.

     > E-mail, if you haven't noticed, is a great business
       communication medium. Send your executive team and managers
       brief -- repeat BRIEF -- e-mailings with HIPAA information and
       news summaries, linked to details at websites like WEDI, AFEHCT,
       JHITA, HIPAAdvisory.com and other content sites. (See URLS
       below.) And, beginning October, consider sending our weekly
       "HIPAAnotes" out as a regular reinforcement. (See From the
       Editors)

     > Point your management group to authoritative sources it already
       respects. Most prominent industry associations and advisory
       groups, like AHA, HFMA, AHIMA, HIMSS, AMIA, AMA, JCAHO, HFMA,
       and CHIM have web-published statements and information on
       HIPAA. Pass them along.

4. INSIDIOUS MODES OF COMMUNICATION

     > If your leadership thinks privacy and security aren't issues in
       your organization, convince it to authorize a formal security
       audit. Some expert information security technology firms will
       perform an enterprise audit for as little as $20 to
       $30 thousand. But beware: the likelihood that significant
       security and privacy vulnerabilities will be exposed is high.
       According to CACI, our security technology partner, it's
       usually able to present client CEOs with their personal
       information like salary and health data, uncovered as a
       routine part of its audit.

     > Send your management team bad press. Kaiser Permanente recently
       made national news after inadvertently sending nearly 1000
       patient E-mails, many with confidential medical data, to other
       patients. Dana-Farber Cancer Institute made headlines in August
       when an employee apparently stole personal records of 12,000
       patients. When it comes to community and public relations,
       there's no news like bad news. Show your managers what can
       happen if significant new privacy and security measures,
       including HIPAA's standards, aren't implemented.

     > If your leadership is drawing up E-health or E-commerce plans,
       find and connect the dots to HIPAA and other potential security
       and privacy vulnerabilities. Internet users are becoming
       increasingly sensitized to potential threats to privacy,
       particularly in health and financial matters. Your organization
       will want to secure its major investments in Internet
       initiatives and reinforce the confidence of E-health users by
       demonstrating enthusiasm for HIPAA's objectives.

     > Determine how many donation dollars have come from patients who
       were solicited by your organization. If alternate strategies
       aren't created in response to HIPAA's privacy requirements,
       how many future donations will be lost? Communicate this to
       your board and senior staff -- and expect a reaction.

     > Keep your management on top of industry HIPAA survey results
       that show what organizations like yours are doing (and not
       doing). Several organizations have published eye-opening
       nation-wide polls and likely will continue to. (Expect
       HIPAAlert's Fall Survey results in October.) Passing on
       the results may help fuel a new sense of urgency among your
       associates.

     > Finally, as we at HIPAAlert like to say, make HIPAA awareness
       ALMOST fun! ...Schedule HIPAAbreaks...offer your own
       HIPAApot...publish a HIPAAmaze or HIPAAcrossword that intranet
       users can complete for a prize...start a HIPAAthletics
       tournament.

The point is build on HIPAAwareness...and they will come.

D'Arcy Guerin Gue
Publisher, HIPAAlert

URLS for above-named organizations:
http://www.wedi.org/
http://www.afehct.org/
http://www.jhita.org/
http://www.aha.org/
http://www.hfma.org/
http://www.ahima.org/
http://www.himss.org/
http://www.amia.org/
http://www.jcaho.org/
http://www.chim.org/


=================================================================

3 /  H I P A A n e w s

   *** Industry Analyst Issues Wake-up Call on HIPAA Costs ***


HIPAA implementation "could cost as much as three to four times that
spent on technological upgrades associated with Y2K," according to a
report released September 15th by the international rating agency
Fitch.  "Health care providers who fail to accurately assess and budget
for the significant requirements associated with HIPAA will place
themselves at risk for possible financial peril," said Fitch analyst
Rebecca C. Lageman. "This is a wake-up call. Health care organizations
need to prepare for HIPAA regulations now, especially those that
already find themselves in financial or technological disarray."

The Fitch report asserts that the severity of the financial and
operational impact will be directly related to the level of
disparity between that organization's current information technology,
security, and communications system and those required by HIPAA.
Health care systems will need to modify existing systems or purchase
new IT systems, hire and retrain staff, and make significant changes to
current processes.

Lageman noted that while the federal estimate of HIPAA compliance costs
is $5.8 billion, Fitch anticipates "an amount in excess of $25
billion."

Fitch believes that health care organizations that begin preparing for
HIPAA regulations now will be in a better financial and organizational
position to comply with the rules as they are finalized. Those that
wait until the final rules are announced will have significant time
constraints for compliance.

For a copy of "HIPAA: Wake-Up Call for Health Care Providers," visit
http://www.fitchratings.com



  *** Gore Emphasizes Protecting Medical Privacy ***


Vice President Al Gore unveiled his plan this week for protecting
medical privacy.  He has pledged to make it illegal to sell personal
medical records for profit. In a Los Angeles rally Gore said, "You have
a fundamental right to privacy, and no powerful interest should be
allowed to sell it off or take it away."

According to Gore, private medical records have been misused by
"insurance companies, drug companies, employers and others to
discriminate against patients or to market information."

Gore said that the federal regulations that are scheduled to be
released this fall (HIPAA) stop short.  His plan extends coverage to
paper records and to "employers, life insurance companies, health
insurance companies and others."

Gore said he would fight to ensure that private medical information was
not released without patients' written consent, and would offer legal
recourse for individuals harmed by unauthorized release of their
records. He would also extend protections for genetic information and
work to outlaw genetic discrimination.



  *** Final Privacy Rule Predicted to be Tougher ***


The New York Times recently reported that the Clinton administration
has decided "to beef up protections for the privacy of medical records"
beyond what it proposed last year. The additions may include extending
protection to many paper records.  Also, while the proposed rule
requires notifying patients of privacy policies, the final rule is
likely to require patients to acknowledge receipt of such notices.  The
new standards may also allow doctors to seek the patient's consent
prior to releasing information.

The new rules would introduce "comprehensive federal standards
requiring doctors, hospitals, pharmacists and insurance companies to
limit the disclosure of medical information" about patients. The rules
will not have to be approved by Congress.

The Times also reported that the final Privacy rule will be issued
before the November presidential elections. Quoting Chris Jennings, the
White House's health policy coordinator, the article said that
President Clinton is "committed to issuing the rules on medical privacy
by late summer or early fall."



  *** AHA Announces Secure, Private National Network for Hospitals ***


The American Hospital Association (AHA) and Darwin Networks have
announced that they will work together to offer hospitals and health
care-related customers access to a secure, reliable, high-speed data
communication network. The announcement claims that by using this
network instead of the Internet, hospitals and their affiliated
organizations will be able to quickly and securely exchange large
digital images (MRI, CT, X-ray, etc.), transfer electronic medical
records; conduct videoconferences and consultations, and manage
administrative data such as billing, claims, payroll and accounts
receivable. The private nature of this network is also intended to
help hospitals address HIPAA's patient data security requirements.

"We understand the pressures that hospitals are under - given the
Balanced Budget Act and the upcoming implications of HIPAA - so we
found a scalable solution that works in health care organizations large
and small.  Importantly, this service does not require a large up-front
capital investment," said Tony Burke, president and CEO of AHA
Financial Solutions, Inc., the AHA subsidiary that conducted the due
diligence in AHA's search for a network connectivity partner.



  *** Survey Shows Americans Overwhelmingly Want Privacy Online ***


American Internet users emphatically want an assumption of privacy when
they go online, according to national survey results published in
August by the Pew Internet & American Life Project. Out of 2,117
Americans, 1,017 of whom are Internet users, 86% favor "opt in"
policies that would require Internet companies to seek permission from
users before they disclose personal information. Yet 56% do not know
that Web sites often identify users and track their web activities by
placing computer code called "cookies" on their computers.

The telephone survey was conducted by the Washington D.C. based Pew
Research Center as part of its mission to explore the Internet's impact
on health care, the family and other segments of society.

Survey results further showed that users want executives to be held
personally responsible for violations of their companies' privacy
policies. Americans aren't unwilling to give out their personal
information, however. 64% of them have either disclosed such
information in return for content they like, or are willing to do so.
Maintaining control seemed to be an overriding concern.

To review complete survey results, go to:
http://www.pewinternet.org/reports/toc.asp?Report=19


=================================================================

4 / H I P A A d v i s o r : Legal Q/A with Steve Fox, J.D.

  *** IMPLICATIONS OF FINAL TRANSACTIONS AND CODE SETS RULE ***

---------------------------

QUESTION: The final rule setting forth the standards for electronic
transactions has been published.  Now what?

ANSWER: In the interest of increasing efficiency and reducing costs
associated with the electronic transfer of information, and as
mandated by HIPAA, the Department of Health and Human Services
(DHHS) has designated national standardized formats for use during
certain electronic health care transactions.  These standards are
applicable to the following health care transactions:

(1)     health care claims or equivalent encounter information,
(2)     health care payment and remittance advice,
(3)     coordination of benefits,
(4)     health care claim status,
(5)     enrollment and disenrollment in a health plan,
(6)     eligibility for a health plan,
(7)     health plan premium payments, and
(8)     referral certification and authorization.

Standards for electronic transactions relating to the first report
of injury and health claims attachments, also required by HIPAA, as
well as any other transactions that DHHS may prescribe, will be
established by DHHS separately.

The electronic transaction standards are applicable to health plans,
health care clearinghouses, and health care providers that transmit
any health information in electronic form in connection with one of
the transactions referenced above.

These "covered entities" may use a "business associate" (a newly
defined term), including a health care clearinghouse, to conduct a
transaction covered under this rule.  "Business associate" means a
person who performs a regulated function or activity on behalf of
a covered entity, and may itself be a covered entity.  However,
covered entities must require their business associates to comply
with HIPAA's transaction standards and require any of the business
associates' agents or subcontractors to comply with the standards
as well.

The standardized formats were developed in conjunction with the
development of HIPAA's proposed privacy regulation.  DHHS
anticipates that compliance with the final privacy regulation
will be required at approximately the same time as the compliance
date for the electronic transaction standards (for most covered
entities, October 16, 2002).  However, if the privacy standards
are substantially delayed, or if Congress does not pass
comprehensive and effective privacy legislation that supercedes
HIPAA's privacy standards, DHHS may suspend the application of the
electronic transaction standards or withdraw this rule altogether.

The two-year implementation period presents covered entities with
the perfect opportunity to audit their internal business processes
at a macro level with the mandated transaction solutions in mind
and to identify opportunities to create synergy across the
enterprise resulting in additional cost savings and increased
efficiency.

Accordingly, organizations should begin conducting internal audits
to determine which of these transactions are currently supported
electronically and the ratio of electronic to non-electronic
transactions.  If the ratio is relatively low, or transition to the
mandated standards deemed too costly, it may be more cost effective
to outsource the entire function to a business associate.  In the
alternative, an organization may find that supporting these
transactions internally not only allows the streamlining of other
related functions, but can also be easily achieved with the
assistance of a current technology vendor.  Therefore, this is a
good time to establish, re-establish, or strengthen relationships
with current and potential business partners and to evaluate overall
HIPAA compliance planning.


This article was co-authored by Rachel H. Wilson, an associate at
Ober/Kaler. Steve Fox, J.D. is Chairman of the Information Systems
and E-Commerce Practice Group of Ober/Kaler, a nationally recognized
law firm in Baltimore. Steve is a frequent speaker on healthcare
information management issues. http://www.ober.com

Disclaimer: This information is general in nature and should not be
relied upon as legal advice. Only your attorney is qualified to evaluate
your specific situation and provide you with customized advice.


==================================================================

5 / H I P A A l i n k s : PRIVACY AND SECURITY

Check out these excellent, off-the-beaten-track Internet resources on
information privacy and security:

PRIVACY

http://www.truste.org/
TRUSTe, an independent, non-profit privacy initiative, has developed
a third-party oversight "seal" program.  Model Privacy statements and
a Web site coordinator's guide are available, as well as a privacy
statement "wizard" to help create a web site privacy policy.

http://www.healthprivacy.org/
The Health Privacy Project is a part of the Institute for Health Care
Research and Policy at Georgetown University. It initiated and staffs
the Consumer Coalition for Health Privacy which monitors related
regulatory developments.  Available are a set of "best principles"
for health privacy and a comprehensive report on state privacy laws.

http://www.epic.org/privacy/tools.html
The Electronic Privacy Information Center (EPIC), a public interest
research center, provides links to "practical" privacy tools.
Mainly for the user.

http://www.eff.org/
The Electronic Frontier Foundation, a non-profit, non-partisan
organization, has the latest news in privacy and related legislation.


SECURITY

http://www.w3.org/Security/
The World Wide Web Consortium's resource for web security.
Explanations of the different security protocols are offered,
with links to cryptography resources.

http://www.alw.nih.gov/Security/
National Institute of Health's security resource, with links to
programs, FAQs, magazines and advisories.

http://csrc.ncsl.nist.gov/
Information about a variety of computer security issues, products,
and research. This site is operated and maintained by NIST's Computer
Security Division.

http://www.issa-intl.org/
The Information Systems Security Association has virus information,
tools, advisories, awareness resources, system patches, continuity
planning, etc.

http://www.sans.org/
The SANS (System Administration, Networking, and Security) Institute,
a cooperative research and education organization, has the latest news
on computer security, articles, mailing lists, skills certification,
and other general resources.


LEGISLATION

http://thomas.loc.gov/
Keep up on this session's privacy/security-related congressional
initiatives. Federal legislative information searchable by keyword,
with bill text and status available.

==================================================================

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==================================================================
Copyright 2000, Phoenix Health Systems, Inc. All Rights Reserved.
Reprint by permission only.
http://www.phoenixhealth.com
==================================================================


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