If a clearinghouse takes in non-standard claims from providers, fails to
translate them to a 100% compliant transaction and then forwards them to
a payer, they would be in violation of HIPAA.  As a covered entity, a
clearinghouse must use a compliant standard.  It may only translate from
a non-standard to the standard or from a standard to a non-standard.  It
may not translate non-standard to non-standard.  If  a clearinghouse where
to pass non-compliant claims to the payer allowing the payer to edit for
compliance, it would be violating the law.  Would it not?

Marcallee Jackson
Long Beach, CA
562-438-6613

-----Original Message-----
From: William J. Kammerer [mailto:[EMAIL PROTECTED]]
Sent: Saturday, January 19, 2002 6:51 AM
To: 'WEDi/SNIP ID & Routing'
Subject: Re: Clearinghouse Aggregation and the ID and Routing Problem


Rachel:

If the "clearinghouse is [not] responsible for supplying a
HIPAA-compliant transaction," when aggregation is done, then who the
heck is?

The clearinghouse sold a bill o' goods (to the providers) that promised
taking care of all the mess of submitting claims on behalf of those
providers to the payer.  Presumably it's the Clearinghouse who tells the
provider what is to be supplied (to submit valid claims), and it's
reasonable to assume the CH would insist on the minimum amount of
information for generating a HIPAA compliant transaction.

That this might be a tough job is not our concern in the WEDi/SNIP ID &
Routing group.  This is simply a scenario portraying intermediaries,
whereby the CH aggregates multiple providers' claims for a single payer.
The CH is the sender - I don't think it's controversial to say its ID
would be in the ISA sender field.  It necessarily follows that only the
CH and Payer need an electronic path (the "routing" in "ID and Routing")
to each other.

And should it really be up to the payer to ferret out the offending
provider that caused the entire batch to be non-compliant?  It seems
sufficient that the payer only notify the CH of an error.  Error or not,
the payer should, as you urged, issue 997s - and those, again, would
naturally be returned to the CH which sent (note I didn't say
"originated")  the transaction.    In this case (of aggregation), we
have a simple situation of the ISA reflecting only the CH and the payer.
You could also have (perhaps the less likely) scenario where both ends
are CHs - we maybe should analyze that scenario, too.

I think examining scenarios like these are critical to fulfilling your
initial areas of inquiry, e.g, (1) Descriptions of today's of the
path/routing/addressing mechanism prevalent today (the current state),
and (2) Requirements for how addressing (identification) and routing
under HIPAA (the future state).

Pre or Post HIPAA, I see the scenario above being equally relevant.

William J. Kammerer
Novannet, LLC.


----- Original Message -----
From: "Rachel Foerster" <[EMAIL PROTECTED]>
To: "'WEDi/SNIP ID & Routing'" <[EMAIL PROTECTED]>
Sent: Friday, 18 January, 2002 04:54 PM
Subject: RE: Clearinghouse Aggregation and the ID and Routing Problem


William,

I think you need to take great care in making the assumption that the
clearinghouse is responsible for supplying a HIPAA-compliant
transaction.
The CH can't make data up out of thin air, and if they don't get all of
the
required data from either the provider or the payer, the CH could be
assuming a huge risk if they supply missing data.

Whether the provider can accept an 997 or an 824 is irrelevant when
reporting error/rejection/acceptance reports. A 997 should always been
sent
in my opinion regardless of whether the receiver wants it or not.
Regarding
the ability to receive an 824 -- there are other mechanisms that can be
employed to provide this type of reporting back to the provider:
autofax,
auto-emal, auto-generated letter via snailmail, an alert to a customer
service rep to telephone the provider. Thus, I don't get hung up on
having
to use an X12 transaction for this. The critical need here is to get the
information back to the provider in a timely fashion.

That's why I keep saying that the business requirements need to be set
forth
first before trying to identify technical or other types of solutions.
For
example, if a business requirement was stated thusly:

"An acknowledgment stating the results (including acceptance or
rejection)
of an interchange's validation against the X12 syntax rules must be
returned
to the originator of the interchange by the receiver of the interchange
within x hours/days."

then the various options for satisfying this business requirement can be
identified and agreed to. Note also that when I write requirements I
always
try to include both a behavioral requirement (what the system or
business
must do) and a performance requirement (how soon, how much) so that
ongoing
performance evaluations can be implemented.

A key question in my mind is how the industry wishes to characterize the
intermediary, whether a VAN or CH. My personal opinion is that both of
these
types of entities are just intermediaries, and as such are never the
sender
or receiver....just as in the supply chain world, a VAN is never the
sender
or receiver, only the store-forward (or other service provider) to
either
the buyer or seller. I think health care is tending to get wrapped
around
the axle by trying to view the CH as the true originator of a
transaction,
when actually, the true originator of a transaction is either the
provider
or the payer. I think the industry needs to reach consensus on this
first.
Once that's achieved, then the next issue of identification (for routing
and
other purposes) can be tackled.

Rachel



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