At a WEDi/SNIP meeting awhile back, Stanley Nachimson gave us these
guidelines on how to determine if a transaction needs to be in the
HIPAA-mandated format.

1. Read the definitions of the three Covered Entities.  If your organization
is a covered entity, go to step 2.  If you aren't a covered entity, you can
stop here.
2. Read the definitions of the Transactions on pages 50370-72 of the Final
Transaction Rule.  If the activity you're performing meets the definition of
the transaction, you need to use the HIPAA-mandated format whenever you
send/receive the transaction electronically.

This is a really simple roadmap that's easy to understand, and gives you an
accurate answer every time.



-----Original Message-----
From: James Kelly [mailto:[EMAIL PROTECTED]]
Sent: Thursday, May 09, 2002 11:35 AM
To: Paul Weber; [EMAIL PROTECTED]
Subject: Re: 834 Enrollment and Maintenance transactions


Paul,

Thanks for your input. I appreciate your position that X12 does not develop
guides for the Federal government.  I am new to this so I may be off base,
but it is my understanding that the IG's were adopted as "THE STANDARD" (45
CFR 162.1502).  Therefore, I would interpret anything in the guides as
having the full force of law.  If the guide says to not use something and I
do, I am not compliant.  If I use a code set that is not allowed in the
guide, I am not compliant.

I think the other authors of this thread and myself were hoping for a legal
perspective.  Are the transfers we described "covered transactions".  For me
it is a big difference as I write payer software.  My first take on this was
I had to accept an 834, not generate one.  Now I am not sure.  I do not want
to spend limited resources implementing a transaction I am not required to
use.  On the other hand, if my clients do have to use this, then I better
build it in.

I agree in the future that we may have to back out of an 834 and use a 271
roster.  But as the rules change and new transactions are covered, it is
something we need to do anyway.  I also would say that as we move forward we
may add other non HIPAA transactions to our software to give us a
competitive advantage.  But for right now, I am working in a budget and need
to know how to spend my resources.

So if anyone from HHS is listening, I would appreciate feedback as to your
interpretation.

>----- Original Message -----
From: "Paul Weber" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, May 09, 2002 11:51 AM
Subject: 834 Enrollment and Maintenance transactions


> 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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