I also interpret that the provider must transmit electronically  - or they
are not covered.  I doubt that is what they wanted the law to say - but that
is what it says.  I would hope that will be addressed in the upcoming
clarifications.
Thanks,
Peg McCauley
HIPAA  Program Office
Phone:  309-765-0655
e-mail: [EMAIL PROTECTED]
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        -----Original Message-----
        From:   Noel Chang [SMTP:[EMAIL PROTECTED]]
        Sent:   Monday, March 18, 2002 10:45 AM
        To:     [EMAIL PROTECTED]
        Subject:        Covered entities



        Has anyone seen any further clarification from DHHS on who must
comply with the Privacy Rule?
         
        The way I interpret the final rule published in December of 2000,
and the guidelines published in July of 2001, the only health care providers
that must comply are those who electronically conduct one or more of the ten
covered transactions.  I have encountered a specialist who does not accept
any insurance, they are a cash only operation.  As such they do not file any
claims or deal with eligibility, etc.  By my reading they would appear to
not be a covered entity and therefore are not required to comply with the
Privacy Rule. 
         
        I keep seeing information from various sources (not DHHS or OCR,
however) that make very broad statements such as "HIPAA applies to everyone"
or "there are no HIPPAA free records".  I can understand what they mean by
these statements in certain context but I think they are a little too broad
and misleading.  Does anyone else agree that a doctor's office who is not
electronically conducting a covered transaction is therefore not a covered
entity for the purposes of the Privacy Rule?  If you do not agree, can you
cite where is the requirement that such an office comply with the Privacy
Rule?
         
        Thanks,
         
        Noel Chang    

        
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