See 45 CFR Section 164.504(e)(2)(i)(D).  There is also language to this
effect in the OCR's "Model" BA document.

Leslie Bender


-----Original Message-----
From: Brenda K. Burton [mailto:[EMAIL PROTECTED] 
Sent: Wednesday, March 19, 2003 2:09 PM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Subject: RE: Billing Services with Contractors


Leslie -

So if my billing company did not consider itself a clearinghouse (thus a
CE); and we were only a BA, then anybody we subcontracted to would
require us to have a BA as well, (e.g. 'second tier business
associates')?  I have not seen/been told that before.  Please indicate
where that is stated in the regs. I appreciate your input and education!

Thanks,
Brenda


 Daniel:
>  
> Not all billing services are "business associates" only.  If your
> billing service performs any "translations" of standard to nonstandard
> data elements in connection with any of the standard transactions
(e.g.,
> if you receive any print images of non standard itemized bills your
> provider clients have sent and key them into an 837 for re-billing or
> for billing to an insurer you now have discovered) your billing
service
> may meet the HIPAA definition of a "clearinghouse" and thus you would
be
> both a business associate and a covered entity.
>  
> If you have any vendors with whom you use/exchange PHI on behalf of
your
> provider clients, they would likely be second tier business associates
> and yes you would need to have them execute BA agreements with you at
> least as stringent as those you sign with your provider clients.  For
> example, if you forward accounts from patients residing in other
states
> to billing companies in those states, you would need a BA agreement
with
> the billing services to whom you forward the accounts.
>  
> ACA International, a non profit trade association for, among others,
> billing and health care collection agencies has extensive educational
> materials and an upcoming program applying HIPAA to billing services
and
> health care collection agencies.  They have some upcoming educational
> programs that may interest you and your counsel. 
>  
> Hope this helps.  
>  
> Leslie C. Bender
> ROI WebEd Company
>  
> -----Original Message-----
> From: Daniel E. McDonald [mailto:[EMAIL PROTECTED] 
> Sent: Wednesday, March 19, 2003 12:59 PM
> To: WEDI SNIP Privacy Workgroup List
> Subject: Billing Services with Contractors
>  
> I wanted to get input regarding Billing Services that use contractors
to
> perform certain services.  My understanding is the Billing Service is
> considered a Business Associate and not a covered entity.  If that is
> true, would the contractors working for a billing service be Business
> Associates of a Business Associate and would they sign a similair BA
> agreement as the billing service did but between them and the billing
> service??
> I look forward to everyone's intepretation as even our attorney is a
bit
> confused.
>  
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The WEDI SNIP listserv to which you are subscribed is not moderated. The 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 http://snip.wedi.org/tracking/.   These listservs should not be used for 
commercial marketing purposes or discussion of specific vendor products and services.  
They also are not intended to be used as a forum for personal disagreements or 
unprofessional communication at any time.

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