Earlier this year I had a fairly detailed exchange with another party on the
topic of DDE. It may be pertinent to this discussion as well. I've inserted
my comments below.

Rachel Foerster
================
Let's look at the issue of DDE for HIPAA electronic transactions from a
different viewpoint.

First, the electronic transactions final rule stipulates what a covered
entity is required to do. Specifically, they must conduct the identified
transactions in compliance with the approved specifications. Some of the
transactions are query/response transactions (270/271, 276/277, 278) that
can be conducted either in batch or real-time mode. Actually, in my opinion,
any of the transactions could be conducted in real-time or near-real-time
mode if two willing trading partners wished to do so and architected their
respective systems to support that mode.

Second, the final rule identifies exceptions for direct data entry and the
use of business associates. Specifically,

b) Exception for direct data entry transactions. A health care provider
electing to use direct data entry offered by a health plan to conduct a
transaction for which a standard has been adopted under this part must use
the applicable data content and data condition requirements of the standard
when conducting the transaction. The health care provider is not required to
use the format requirements of the standard.

[Note that this exception is identifying the provider is permitted and not
permitted to do. In my opinion, this places the burden on the provider to
not use a direct data entry system, which  is typically developed and made
available to the provider by the payer, that fails to meet the data
content/condition requirements.]

Third, the final rule stipulates additional requirements for health plans:
For example,

� 162.925 Additional requirements for health plans.
(4) A health plan may not offer an incentive for a health care provider to
conduct a transaction covered by this part as a transaction described under
the exception provided for in � 162.923(b). [ � 162.923 Requirements for
covered entities. (b) Exception for direct data entry transactions]

In other words, you cannot attempt to induce a provider to use direct data
entry by offering incentives.

So now, we must define incentive. From the American Heritage Dictionary:
in�cen�tive (�n-s�n�t�v) n. 1. Something, such as the fear of punishment or
the expectation of reward, that induces action or motivates
effort. --in�cen�tive adj. Serving to induce or motivate.

I can categorize an incentive (a reward) as being economic (offer monetary
reward), performance (provide faster answers than when not using DDE),
enriched information  (providing more information via a DDE response than
what is supported by the corresponding standard transaction.)

OK, so if we can agree with the above, then is incentive defined by either
the reg or DHHS FAQ, and if it is where and how? This is the tough part!!
Here's what I've gleaned from the DHHS FAQs: (I've added the emphasis in the
response.)

What level of service is required to be provided under HIPAA when an entity
implements batch and/or real time submission of a standard transaction?
8/27/2000:
45 CFR 162.925 states "a health plan may not delay or reject a transaction,
or attempt to adversely affect the other entity or the transaction, because
the transaction is a standard transaction." If the standard transaction
(e.g., ASC X12N 270/271) is offered in a batch (non-interactive) mode, the
health plan has to offer the same or higher level of service as it did for a
batch mode of transaction before the standards were implemented by the plan.
If a health plan offers the transaction in a real time (interactive) mode,
the level of service has to be at least equal to the previously offered
level for a real time mode of transaction. If a transaction is offered
through Direct Data Entry (DDE), the level of service, again, has to be at
least equal to the level offered for the DDE transaction before
implementation of the HIPAA standard.

My interpretation of this is that if a health plan currently offers real
time (interactive) query/response or DDE query/response TODAY, that the
current response time (level of service) under HIPAA must be equal to
today's response time before HIPAA. Thus, DHHS views real time and DDE as
distinct modes.

Here's some insight from the DHHS FAQ into the issue of an incentive taking
the form of information enrichment. I use this example since the reference
is to a web query, which in my opinion, is a form of DDE.

If a covered entity adheres to the data content requirement, can they also
provide additional information using other technologies?
For example, if a health plan has a Web query solution for claim status, and
meets all data content requirements for the 276 request and the 277
response, could they also provide additional information regarding the
status of the claim? An example of additional information would be to
provide claim resolution instructions for denied claim, or a statement that
would better clarify the action taken on the claim.
7/1/2001:
A health plan may not add additional information to any of the standard
transactions. It may, however, provide additional information through a
separate mechanism. For example, the web-based service described in the
question could provide additional information on a web page separate from
the web page containing the standard data content. The resolution of the
standard transaction cannot depend on the additional information.
Health care providers and health plans that have a business need for
additional information are encouraged to work with the Designated Standard
Maintenance Organizations to submit a request to modify the standard(s).
Section 162.910 established criteria for the processes to be used for such
modifications.

But, the unanswered question still remains: if you don't do real time or DDE
today, but you plan to do so post HIPAA compliance date, then what level of
service must be provided? Health plans are not required by HIPAA to offer
real time transactions.

Now to your primary question that seems to be, "Can DDE be a faster method
for conducting a HIPAA transaction than EDI?" My answer would tend to be
yes, based on the above information, specifically the FAQ that states that
the level of service for DDE under HIPAA must be equal to DDE pre-HIPAA. I
can find no information that would lead to answering the question about
level of service post-HIPAA for DDE if you did not provide DDE pre-HIPAA.

The implementation guides for the 270/271, 276/277, etc. only describe and
compare batch vs real time within that context and give
instructions/recommendations about how to conduct the standard transaction
in either batch or real time mode. They don't seem to bring in the issue of
DDE when conducting the transaction.

Does this help? Or is it clear as mud? My concern is that the DHHS FAQs are
just that....questions and answers. They are not a formal part of the
regulation. At the end of the day, if there is a dispute, I would expect the
Court to look first to the language of the regulation. But I would also
expect the Court to examine the intent of the payer if it is brought before
the bar on a complaint of offering an incentive to do DDE, etc. in violation
of the regulation. And keep in mind, I'm not an attorney, so these opinions
are just those of a layperson without any standing as an attorney.

BTW, I also found a DHHS FAQ about fax and voice response systems. Their
conclusion is that
12/28/2000:
Fax imaging and voice response transmissions are not subject to the HIPAA
transactions standards but may have to meet privacy and security standards.
Health plans may continue to offer these services, however, they must still
be able to accept and send the HIPAA standard transactions.

Personally, I can make a technical argument showing why voice response is
functionally equivalent to DDE since both are a human-to-computer
interaction, but then again, who am I? And again, this comment is only a FAQ
and not an official part of the regulation...so....take care and document
why you reached certain decisions and implemented what you did. Remember,
under HIPAA, complete and accurate documentation is essential....for
everything!!!
================


-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]
Sent: Tuesday, March 26, 2002 9:55 AM
To: [EMAIL PROTECTED]
Subject: RE: Computer-to-computer HTML under the transaction regulation


Hmmm.  I was reading it differently, but have the same DDE vs. forced
realtime 270/271 issue.

We have had some similar discussions on a clearing house representing both
the payor and the provider...offering both the service of processing in a
non-compliant application interface format.

They can offer that service but it must be in a hipaa x12 format somewhere,
even if just a microsecond.  I believe the DDE exemption is eliminated due
to the computer to computer activity.

A hovering question is what to do with an existing real time transaction (we
called a DDE) that doesn't qualify for a DDE exemption because it is
computer to computer.  Your solution is great to have the payor upgrade the
proprietary format enough to have a clearinghouse form a 270/271 for a
microsecond.  Does that force offering a realtime 270/271?  Hopefully not.
We really do need an answer because of the sizeable impacts.

I'm really not talking about a loophole.  I'm suggesting upgrading existing
realtime content while forming a batch 270/271 which is a lot before the
deadline and a great launching pad for the next round.
Peter Barry may be able to weigh in on this fuzzy issue.



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