Rachel
I think I am on too many lists... My apologies to who ever quoted from the rule in 
this discussion... I clearly got the name wrong...

Jan

Rachel Foerster wrote:

> Jan,
>
> I'm not sure what "exception cited by Sujay" you're referring to. I didn't
> see any message in this thread from a Sujay.....clarification please?
>
> Thanks,
>
> Rachel
>
> -----Original Message-----
> From: Jan Root [mailto:[EMAIL PROTECTED]]
> Sent: Tuesday, April 23, 2002 8:26 AM
> To: [EMAIL PROTECTED]
> Subject: Re: questions on the appropriate way to reply when there are
> error in a transaction request
>
> Rachel
> Thanks for a good explaination of the details.  It seems that banks, like
> many entities, must look at what role they are playing in the process to
> determine if they are HIPAA covered entities, business associates or
> neither.  Judging from the article David circulated, banks have only
> recently become aware that HIPAA may impact them.   I can understand that
> such a realization would be
> something of a shock.
>
> So, does the exception cited by Sujay apply when a bank is acting as a
> clearinghouse, that is, as a covered entity and not as a 'financial
> institution'?  I would guess not...?
>
> Jan
>
> Rachel Foerster wrote:
>
> > Jan,
> >
> > It's a mistake to believe that the banks translate the X12 interchange
> into
> > an ACH format. That's simply not true. When an X12 interchange is sent to
> a
> > bank with payment instructions and table 2 data (RA stuff) the entire
> > interchange is dumped into a CTX format. It's just a wrapper around the
> X12
> > stuff and no translation takes place.
> >
> > When the banks perform this activity with no other value-add services
> being
> > done either on behalf of the payee or payer, they are simply a conduit and
> > they are neither a business associate or a covered entity under HIPAA.
> >
> > On the other hand, if the bank provides additional services, such as
> > reformatting the received table 2 data in an 835 into another format and
> > then forwards that on to its customer, the provider, it is acting as a
> > clearinghouse, thus becoming both a covered entity and a business
> associate.
> > I also believe the same would be true if the bank received the 835 table 2
> > data and put it on paper to send to its customer.
> >
> > Encrypting is the entire interchange is not an option if sending the
> > complete 835 through the banking system. The 835 table 1 data must be in
> the
> > clear since this is where all of the payment instructions are found. In
> this
> > case, then encyrpting table 2 would be the only option for ensuring the
> > confidentiality of the PHI. But, this approach, of course, has all sorts
> of
> > issues and challenges.
> >
> > And deciding to separate the data from the dollars has its own set of
> issues
> > as well, not the least of which is the receiving system's ability to
> receive
> > the 835, recognize that its RA only, that payment will be made
> > electronically and thus to suspend posting of the RA until notified by the
> > bank that the funds have been received, matching the 835 to the funds
> > received notice from the bank, etc.
> >
> > Rachel
> >
> > -----Original Message-----
> > From: Jan Root [mailto:[EMAIL PROTECTED]]
> > Sent: Monday, April 22, 2002 12:36 PM
> > To: [EMAIL PROTECTED]
> > Subject: Re: questions on the appropriate way to reply when there are
> > error in a transaction request
> >
> > I could be way wrong or stating the obvious, but I thought banks were
> ruled
> > to (possibly) be covered entities when they qualified to be classified as
> > clearinghouses under HIPAA...?  See quote from FAQ:
> >
> > "The definition of Business Associate at 45 CFR 160.103 applies generally
> to
> > a person or organization that performs, on behalf of a covered entity, a
> > function or activity involving the use or disclosure of protected health
> > information or any other function, activity, or service covered by the
> > Administrative Simplification regulations. If the network in the question
> > accesses or uses
> > protected health information on behalf of a covered entity, whether for
> > translation or payment or quality assurance or other purposes, it is
> > onsidered a business associate. "
> >
> > Translating payment data (associated with a particular person - there may
> be
> > additional privacy issues possibly involved here as well if banks get
> > classified as clearinghouses) in and out of the ACH format meets the
> > definition of a clearinghouse, no?  And the 835 is designed with the
> option
> > of sending it to a bank.  I thought this was why Finance got involved in
> the
> > discussion with the
> > 835 WG.   They realized that HIPAA might be applied to them.
> >
> > Let me know if I'm off base here....
> >
> > Jan Root
> >
> > "William J. Kammerer" wrote:
> >
> > > Hey!  I have one for you all!  Take a look at the 837 Professional IG
> > > (004010X098) - it uses a loop (2440) at the end of the transaction which
> > > IS NOT in the underlying 004010 standard! What would you do in this
> > > case?  Send back a negative 997 indicating an X12 syntax error if the
> > > 2440 loop were actually used? See if you can make hay with that!!
> > >
> > > I agree with Ajay that the 997 *could have* been made to report
> > > elegantly on IG errors, but as Rachel has informed us, the DM to change
> > > the 997 failed - though I wouldn't have used her term "resoundingly
> > > disapproved." The 997 DM was actually approved by the full X12
> > > membership, but X12 constitutional legerdemain was used by X12F Finance
> > > to find new votes (pregnant chads) after the fact in order to kill it.
> > >
> > > Anyway, X12N Insurance was apparently interested in trying to resurrect
> > > the 997 capable of reporting on the IGs.  The battles are now heating up
> > > between X12N and X12F: we actually witnessed a scene last February at
> > > the X12 meeting where X12F accused X12N of bastardy.  Well, actually, to
> > > be truthful, the term liberally used was "illegitimate": "in the
> > > illegitimate 835 implementation guide...", "...the illegitimate 'DSMO'
> > > process...," and "specific Implementation Conventions (such as those
> > > illegitimately published by Insurance)."
> > >
> > > Finance wants the 997 left as it is, for X12 syntax reporting only.
> > > Further, X12F isn't even all that wild about X12N's proposed changes to
> > > fully support IG reporting in the 824! After all the mutual anathemas
> > > were cast about, the only "compromise" countenanced by the X12F
> > > patriarchs is for someone to build an entirely new transaction set
> > > modeled on the 997 for reporting on IG syntax errors: the
> > > eschatologically monikored "666" - the Mark of the Beast.
> > >
> > > Finance didn't like a 997 which could report on implementation guide
> > > errors.  Banks thought for some reason they could be exposed to some
> > > kind of liability if they received a negative IC-specific 997 from the
> > > payee in response to an 820 (or 835) - the payee bank would not be
> > > prepared to handle the "tuned" 997.  I didn't understand all the
> > > scenarios, which involved dealing with parties not customers of the
> > > bank: 820 RAs travel through the ACH network, but there would be no way
> > > to get the IG-specific 997 back to the original sender, or something
> > > like that.  And because the funds had already been transferred, one or
> > > both banks wouldn't know what to do.
> > >
> > > Of course, if banks didn't kludgily send remittances through ACH, the
> > > problem wouldn't exist.  And they can't do this anyway with the advent
> > > of HIPAA because EOBs contain PHI. Payment shouldn't be confused with
> > > remittance. The 835, like the 820, seems to have been designed to mimic
> > > the old paper remittance, which included the check under a perforation.
> > > This document paradigm has been carried over to the electronic arena.
> > > An EFT payment is an order to one's own bank (with whom you already have
> > > a relationship) to deposit funds in another account, usually at another
> > > bank.  The payee has no (necessary) relationship with the payer's bank -
> > > though the banks themselves have a relationship through the ACH system.
> > >
> > > The remittance, or EOB, on the other hand, explaining the payment (and
> > > containing PHI), is none of any bank's business - payer's or payee's.
> > > It's strictly between the payer and payee.  Banks are not CEs and can't
> > > even legally look at the stuff:  it has to be encrypted.  But if the 835
> > > were encrypted, how would the bank read the BPR?  Why the two - EOB and
> > > dollars - should ever travel together is beyond me, unless to slavishly
> > > mimic the paper remittance.  And so banks can bill themselves as "Value
> > > Added Banks,"  Unfortunately, this practice has caused all this ruckus
> > > over the innocuous IG-reporting 997.
> > >
> > > William J. Kammerer
> > > Novannet, LLC.
> > > +1 (614) 487-0320
> > >
> > > ----- Original Message -----
> > > From: "Ajay K sanghi" <[EMAIL PROTECTED]>
> > > To: <[EMAIL PROTECTED]>
> > > Sent: Monday, 22 April, 2002 08:36 AM
> > > Subject: RE: questions on the appropriate way to reply when there are
> > > error in a transaction request
> > >
> > > Rachel,
> > >
> > > Thanks for your response.
> > >
> > > I guess, for a translator vendor, it means, support "both" ways of doing
> > > it, since some customers will probably use only 997 while some will use
> > > combination of 997 and 824 to report HIPAA guide errors, especially in
> > > absence of clear guidelines mandated by HIPAA.
> > >
> > > Regards,
> > >
> > > Ajay
> > >
> > > ----- Original Message -----
> > > From: "Rachel Foerster" <[EMAIL PROTECTED]>
> > > To: <[EMAIL PROTECTED]>
> > > Sent: Sunday, 21 April, 2002 01:17 PM
> > > Subject: RE: questions on the appropriate way to reply when there are
> > > error in a transaction request
> > >
> > > The implications are, in my mind, that forward thinking EDI management
> > > systems vendors will see the opportunity to add new capabilities to
> > > their product offerings that serve the needs of a very large potential
> > > market. Just because current EDI systems don't automatically generate an
> > > 824 today like they can for a 997, doesn't mean that they couldn't if
> > > they wanted to. The X12 standards neither require nor prohibit either
> > > approach. Furthermore, other industries beyond health care also have
> > > this need.
> > >
> > > And, several of the country's leading EDI management systems vendors are
> > > actively involved in the current work being done at X12N on adding new
> > > codes, etc. to the 824 to support the insurance industry's needs, but
> > > also, as Ruben has pointed out, are hard at work developing an
> > > impelemtation guide for the industry to use for the 824. These companies
> > > include IBM, Sybase, Unisys...and my apologies to others whose names I
> > > can't immediately recall.
> > >
> > > Lastly, the pioneers that created our X12 standards also recognized that
> > > standards must be able to change to meet new needs. Thus, if the issues
> > > you mentioned relative to the 824 prevent it from supporting the needs
> > > of the users, changes will be proposed and modifications made to meet
> > > the new requirements. That's why the current body of X12 standards
> > > includes hundred's of transactions, technical reports and guidelines
> > > over the first version of the X12 standards in 1983 which contained 6-10
> > > transactions only, no technical reports or guidelines.
> > >
> > > Rachel
> > >
> > > ----- Original Message -----
> > > From: "Ajay K sanghi" <[EMAIL PROTECTED]>
> > > To: <[EMAIL PROTECTED]>
> > > Sent: Sunday, 21 April, 2002 01:13 AM
> > > Subject: RE: questions on the appropriate way to reply when there are
> > > error in a transaction request
> > >
> > > Rachel,
> > >
> > > You wrote:
> > > >The need for the 824 is crucial to effectively managing the HIPAA error
> > > reporting environment.
> > >
> > > Possibly, even though at this time I am not convinced.
> > >
> > > Looking at 824 (particularly OTI segment), it seems that "unlike" 997,
> > > 824 is "not meant" to be generated directly by the translator
> > > (Translators will still be able to directly generate it, is a separate
> > > issue). Reason for this is because fields like "transaction/group
> > > control numbers", which are "not" normally communicated to business
> > > application are "optional" in 824 (mandatory in 997). Rather, business
> > > identification fields (please see OTI02, OTI03) are mandatory.
> > >
> > > What implications would this have?
> > >
> > > You wrote: > While the 997 can be kludged to report guide syntax errors,
> > > such as missing mandatory segment or element or an invalid ***X12***
> > > code, it cannot report an invalid medical code, for example, nor any
> > > semantic errors, nor inter-segment dependency errors.
> > >
> > > I respectfully disagree. Please reject 997 (and use 824 instead) for
> > > right reasons and not wrong reasons.
> > >
> > > For example,
> > >
> > > (a) invalid medical code (I assume you mean codes from external code
> > > sets).
> > >
> > > This can be "easily" reported using AK403[7]. Even non-coded data
> > > elements, where a certain "pattern" of text is desired, can "also" be
> > > reported using AK403[7]
> > >
> > > (b)inter-segment dependency errors
> > >
> > > All these errors, ultimately boils down to a "situational"
> > > element/segment being "required" or "not used".
> > >
> > > This can also be "easily" reported. Use AK304[3] (Mandatory Segment
> > > Missing) for "situational" segments, which are "required" in certain
> > > situations. Use AK304[2/7] (Unexpected Segment/Segment not in proper
> > > sequence) for "situational" segments, which are "not used" in certain
> > > situations.
> > >
> > > Ditto for other situations, there's no problem. Please tell me
> > > situations, where there is difficulty in reporting such errors. Is there
> > > a document, which list situations that cannot be reported using 997 but
> > > can be reported using 824 (related to compliance of HIPAA messages
> > > only)?
> > >
> > > Please note, in 997 we can also report sequence number (exact position
> > > of the segment in the interchange file, which triggered this error)
> > >
> > > Some situations for which there is difficulty in reporting errors using
> > > 997, possibly cannot not be reported even by 824! For example, "a
> > > situational element is required if the corresponding value was already
> > > received (I think this was in relation with 2nd 837P being generated to
> > > a secondary payer in response to 835 received from the primary payer)".
> > >
> > > I re-iterate from my earlier email:
> > >
> > > There was no difficulty in generating a corresponding 997 for following
> > > cases:
> > >
> > > (a) Inter-element dependencies within segment.
> > > (b) Inter-element dependencies between two different segments of same
> > > hierarchy.
> > > (c) Inter-element dependencies between elements of different hierarchy.
> > > (d) Inter-segment dependencies in the same hierarchy within a loop.
> > > (e) Inter-segment dependencies between segments in different hierarchy.
> > > (f) Dependencies on external code set for certain elements (both simple
> > > and qualifier based (SV101)).
> > > (g) Dependencies on certain "patterns" of text in some elements."
> > >
> > > Ajay
> > >
> > > -----Original Message-----
> > > From: [EMAIL PROTECTED]
> > > [mailto:[EMAIL PROTECTED]]On Behalf Of Rachel Foerster
> > > Sent: Friday, April 19, 2002 10:00 PM
> > > To: [EMAIL PROTECTED]
> > > Subject: RE: questions on the appropriate way to reply when there are
> > > error in a transaction request
> > >
> > > Ajay,
> > >
> > > Absolutely not! The 824 is the only transaction that can effectively
> > > support semantic non-compliance errors with a guide. While the 997 can
> > > be kludged to report guide syntax errors, such as missing mandatory
> > > segment or element or an invalid ***X12*** code, it cannot report an
> > > invalid medical code, for example, nor any semantic errors, nor
> > > inter-segment dependency errors.
> > >
> > > The need for the 824 is crucial to effectively managing the HIPAA error
> > > reporting environment.
> > >
> > > There is a snowball's chance in Hell of the X12 Committee membership to
> > > agreeing to modifying the 997 to report implementation guide and
> > > semantic errors. This has already been attempted and the voting members
> > > resoundingly disapproved, with me being one of them.
> > >
> > > Rachel
> > > Rachel Foerster
> > > Principal
> > > Rachel Foerster & Associates, Ltd.
> > > Professionals in EDI & Electronic Commerce
> > > 39432 North Avenue
> > > Beach Park, IL 60099
> > > Phone: 847-872-8070
> > > Fax: 847-872-6860
> > > http://www.rfa-edi.com
> > >
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> discussions on this listserv therefore represent the views of the individual
> participants, and do not necessarily represent the views of the WEDI Board
> of Directors nor WEDI SNIP.  If you wish to receive an official opinion,
> post your question to the WEDI SNIP Issues Database at
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