Margaret,
I would agree with your comments.  I think this falls under the letter
and the intent of the law.  If HHS does not clarify this I am sure
Congress will. Privacy and security have become to big an issue to have
this type of loophole.  

Regards,

David Frenkel
Business Development
GEFEG USA
Global Leader in Ecommerce Tools
www.gefeg.com
425-260-5030

-----Original Message-----
From: McCauley Margaret M [mailto:[EMAIL PROTECTED]] 
Sent: Monday, March 18, 2002 11:17 AM
To: 'Noel Chang'; [EMAIL PROTECTED]
Subject: RE: Covered entities

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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