As one of the many volunteers who work on the 834 guide, I feel compelled to jump into 
this discussion.

All of the X12N implementation guides were written as industry guides that were 
subsequently adopted by the secretary of HHS. It is not within our charter to develop 
guides for the federal government. Hence I would be reluctant to get into interpreting 
HIPAA regulations within our IGs. Can the definition of a payer for the 834 be revised 
in a future edition of the IG...sure, anything's possible. But I certainly don't want 
to be the one responsible for interpreting the intent of HIPAA regulations. That's 
what statutes and case law are for.
 
The issue of the 271 vs 834 eligibility roster seems to rear its ugly head 
periodically. Here's my take: The purpose and scope of the 834 transaction set do not 
explicitly prohibit its use for an eligibility roster. However X12N has the 271 
transaction set as mentioned below in this thread. The 271 work group is actively 
developing an implementation guide for eligibility rosters and it is my understanding 
that they are close to publication.
 
Therefore those who adopt the 834 as an eligibility roster solution may find 
themselves having to go back and retrofit their systems to support the 271 
transaction. Especially when smart money says the 271 roster gets named in the next 
round of HIPAA. 
 
I think what would help clarify some of this is a determination of whether the parties 
in question are enrolling membership in the sub-contracted plan or are verifiying 
eligibility for services. For instance, if claims are to be paid by the 
sub-contractor, then they would likely need to have enrollment (834). If the 
sub-contractor is capitated by the primary plan, then they likely need an eligibility 
roster (271) and/or interactive eligibility (270/271).
 
Paul Weber
916-449-6970
[EMAIL PROTECTED]

----- Original Message ----- 
From: Tucci-Kaufhold, Ruth A. 
To: '[EMAIL PROTECTED]' 
Sent: Wednesday, May 08, 2002 7:14 AM
Subject: RE: 834 Enrollment and Maintenance transactions


I also have such customers that indicated their interpretation of the situation as 
James stated.  
 
I just pointed out to the customer that the law defines them as the covered entity and 
they are responsible for the work that they contract out to PPOs, PBMs, etc. for 
specific health care transactions such as pharmacy, vision, prior auth, referrals, 
etc.  The law is clear on that.  There should be a change made to IG to relay a 
consistent message on the definition of health plan in an 834 and in the law.
 
Now whether not they want to "interpret" it that way is a different story.  So, in 
that case I just suggested to them that they "document" their understanding of the 
law, and that will explain to CMS when audit times comes around.  
 
Ruth Tucci-Kaufhold 
UNISYS Corporation 
4050 Innslake Drive 
Suite 202 
Glen Allen, VA  23060 
(804) 346-1138 
(804) 935-1647 (fax) 
N246-1138 
[EMAIL PROTECTED] 
-----Original Message-----
From: James Kelly [mailto:[EMAIL PROTECTED]]
Sent: Tuesday, May 07, 2002 10:32 PM
To: Stuart Thompson; [EMAIL PROTECTED]
Subject: Re: 834 Enrollment and Maintenance transactions


Stuart,
 
I too have questions on this.  I have numerous clients (Taft-Hartley union benefit 
plans) who contract with outside vision networks, dental and medical PPO's, and PBM's. 
 Some of these companies are taking the position that they can still use their 
proprietary formats since the 834 is from an employer to a health plan. Their logic 
seems to be that they are not a payer since they are not ultimately responsible for 
the benefit payment.
 
I, however, agree with your analysis.
 
In regards to item 1, the 834 IG on page 8 defines a payer/insurer as:
 
"The payer is the party that pays claims and/or administers the insurance 
coverage,benefit, or product. A payer can be an insurance company; Health Maintenance 
Organization (HMO); Preferred Provider Organization (PPO); a government agency, such 
as Medicare or Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS); or another organization contracted by one of these groups."
 
On item 2, I also agree.  That section adopts the above quoted implementation guide as 
the standard.
 
On item 3, I have heard of a 271 roster transaction.  This transaction is used to send 
a list of covered members to another business associate.  When a poll was done at the 
Wedi-Snip conference in Baltimore, most attendees indicated they were going to use the 
834 for this transaction.
 
I think the problem is that the definition of a payer in the IG does not match the 
definition of a health plan in the law.  Also section 162.1501 says specifically that 
the 834 transaction is "to a health plan to establish or terminate insurance 
coverage." 
 
Hopefully some of the more learned members of this list will share their opinions on 
this.
 
Jim Kelly
TPA Computer Corp
From: Stuart Thompson 
To: [EMAIL PROTECTED] 
Sent: Monday, May 06, 2002 7:49 PM
Subject: 834 Enrollment and Maintenance transactions


I would like to receive opinions regarding the following: 

Title 45, CFR �162.103 defines "Health plan" to include an individual or group plan 
"that provides, or pays the cost of, medical care...".  "Health Plan A" is a major 
medical health plan that contracts Company B to provide specialized medical care (for 
example, vision or dental care) to Company A's enrollees.  "Company B" provides that 
specialized medical care through its contracted providers and pays those providers = 
for=20 such services.  To carry out its contract obligations, Company B needs to 
receive data identifying Health Plan A's enrollees.  

Do you agree or disagree with the following?  In either case, please explain why: 

1. Company B falls within the definition of "Health plan" because it provides or pays 
the cost of medical care. 
2. 45 CFR 162.1502 allows Health Plan A to send Company B the necessary data via an 
834 transaction.  
3. A data transmission from Health Plan A to Company B cannot be deemed a compliant 
271 eligibility response absent a 270 eligibility inquiry.

Thank you in advance for any opinions that you would be willing to share. 

Stuart Thompson 
Vision Service Plan 
Rancho Cordova CA 

[*Please note: The above statements and questions are my own and do not necessarily 
represent the views of my employer].


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