Business Associates are only required to be compliant as directed by their
covered entities and to the extent they provide services that affect claims
processing or deal with patient information.  The compliance extension only
applies to extensions for transaction and code set compliance so if you are
not involved in transactions on behalf of the covered entity then you don't
need an extension.

If you are providing transaction processing on behalf of a covered entity
you may fall under the HIPAA definition of a clearinghouse which is a
covered entity - not a business associate - be sure that the services are
directly on behalf of the covered entity.

As a business associate you don't have to file a compliance plan and are
automatically extended if your covered entity has filed for an extension.
If you need the extension for transaction services you provide for a covered
entity then you need to get the covered entity to file a compliance plan.  A
business associate falls under the section in the compliance plan that
details receiving services in support of transaction processing through a
contractor or vendor.

In all cases you need to accommodate a plan that assures HIPAA compliant
transaction testing will commence April 16, 2003.  This is generally
interpreted to mean external testing with trading partners - that opinion is
divided but considering the amount of testing that will need to be done to
assure that trading partners can exchange HIPAA transactions without
violating security, bringing down the systems on either end, corrupting the
data, or interpreting the data and response incorrectly at each end this
promises to be complex testing that will require at least from April to
October to complete.

Becky Reed

-----Original Message-----
From: Holman, Lisa A. [mailto:[EMAIL PROTECTED]]
Sent: Wednesday, April 10, 2002 11:47 AM
To: Transactions (E-mail)
Subject: compliance extension for business associates


Is there verbiage anywhere that addresses whether a business associate,
treating themselves as a covered entity, is eligible to file for transaction
compliance extension?  Everything I've been reading about the exention seems
to apply exclusively to covered entities only.  I guess my main questions
are, would HHS even accept an extension plan from a business associate and
has anyone else run into this particular scenario?

Thanks,


Lisa Holman
Haverstick Consulting
952.656.3733




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