Well almost......

The Transaction regulation clearly requires some contractual relationship
between the CE and the bank.

However, page 50318, Federal Register dated August 17, 2002 states, "The
administrative simplification provisions of HIPAA do not require non-covered
entities to use the standards, but non-covered entities are encouraged to do
so in order to achieve the benefits available from such use."

The bank does not have to accept or process HIPAA compliant transactions.
The bank cannot be out of HIPAA compliance at any time because they are not
subject to HIPAA.  The bank is subject to GLB privacy provisions for the
data it has under its control.

You as the CE will be OK if your contract spells out the needed HIPAA
language.

Edward Meyers
Security Officer
Missouri Department of Mental Health
[EMAIL PROTECTED]

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]
Sent: Monday, April 29, 2002 2:25 PM
To: Bill Chessman; [EMAIL PROTECTED]; [EMAIL PROTECTED]
Subject: RE: questions on the appropriate way to reply when there are
errors in a transaction request


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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