I think a Bank's role in an 835 transaction is as a Clearinghouse for a
provider, e.g. if a bank receives the standard transaction and converts it
into a non-standard format for a provider (note: the bank can also be a
business associate for the payer -- accepting non-standard and sending an
835, that will occur less often though).  As a clearinghouse, the bank is
subject to HIPAA.

If the Bank is not a clearinghouse, then they are certainly a business
associate and the covered entity hiring the bank would have to require the
bank, by contract, to be compliant.  

Ken Fody
Independence Blue Cross

-----Original Message-----
From: Bill Bernath [mailto:[EMAIL PROTECTED]]
Sent: Monday, April 29, 2002 3:58 PM
To: [EMAIL PROTECTED]; [EMAIL PROTECTED];
[EMAIL PROTECTED]; [EMAIL PROTECTED]
Subject: RE: questions on the appropriate way to reply when there are
errors in a transaction request


Whatever happened to the 'Covered Entity' concept?  I would think that the
bank is not one, so they would not be subject to becoming HIPAA compliant in
any way.  Good business practices should prevail here - JMHO - b

Bill Bernath
Blue Cross Blue Shield of North Carolina 
Privacy Office
(919) 765-7006
[EMAIL PROTECTED]


>>> <[EMAIL PROTECTED]> 04/29/02 03:24PM >>>
Would you not have to have a "Chain of Trust" relationship, and a Trust
Partner Agreement with the Bank in question for all importation exchange?  I
think so.  Without it, you are liable.  So the simple answer is, the bank
would have to be HIPAA compliant for all areas and systems that receive and
use that identified information.  Sounds like a new business opportunity for
a smart bank!  HIPAA Compliant Banking Services!!!  Any Bank VP's listening
out there?  Anyone own bank stock who wants to write a letter to your bank
CEO?

Regards,

Dr. Tim McGuinness, Ph.D.
Sr. Compliance Specialist & Solutions Architect
Certified HIPAA Chief Privacy Officer
DynTek Inc.
www.dyntek.com 

-----Original Message-----
From: Bill Chessman [mailto:[EMAIL PROTECTED]] 
Sent: Monday, April 29, 2002 1:31 PM
To: '[EMAIL PROTECTED]' 
Subject: RE: questions on the appropriate way to reply when there are
errors in a transaction request


This may not be the right place to ask this question (and it might not even
be reasonable or valid), but since the thread is running here, I might as
well throw it out:  If an 835 contains patient information (even the patient
name) is sent to an organization not required to be HIPAA compliant, isn't
it a violation of the patient's privacy rules?  The bank may not use the
information, but since it's in the transaction, it is visible to a
(theoretically) unauthorized party.

Best regards,
Bill Chessman
Peregrine Systems, Inc.


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