Linda,

I will take a stab at not answering your question. :-)

What is a transaction?  There are at least two views:

- The ASC X12 837 "transaction set" is the transaction adopted by the 
Secretary as the standard under HIPAA.  If there are any defects in the 837, 
the entire 837 transaction set is to be rejected, regardless of how many 
claims it contains.  Some are taking this "heroic" position.  In fact, the 
997 acknowledgment can either accept or reject an entire transaction set at a 
time.  That is the only "granularity" of the 997.

- The health care claim is the standard adopted by the Secretary, and the ASC 
X12 837 is the standard electronic vehicle to convey the standard claim.  If 
there are any defects in the claim, each claim can be independently accepted 
or rejected, even if they happen to be inside the same electronic 837 
envelope.  Since the 997 cannot address this finer granularity, other 
transactions such as the 824, 277, or 835 must be used to communicate such 
claim by claim rejections.  Of course, if the 837 transaction set is 
syntactically incorrect, the whole thing gets rejected with a 997.

Today, using the NSF or UB92, a provider will be put in "production" by a CMS 
contractor as long as they have 5% or less "bad claims" in their EDI files.  
Some clearinghouses target this same 5% error rate as acceptable, and provide 
incentives to keep the error rate below 2%.  But everybody recognizes that 
achieving a 0% error rate is unlikely, even with today's somewhat loosely 
defined NSF and UB92 requirements.

So, my prediction is that if a payer takes the "heroic" position of saying the 
HIPAA X12 837 transaction sets must be perfect or they get rejected, the 
providers will find out soon enough (on the very first rejected 837!) and 
then they will change their translator to produce a single claim per 837, so 
the payer can reject a single claim without affecting other claims.  Then the 
provider will turn the rejected claim around, print it on paper, and mail it 
to the payer.  This will be specially important for clearinghouses, since you 
don't want one bad claim from a provider causing massive rejections to claims 
from other providers.  The end result will be a waste of EDI translator 
resources at both ends, lots of paper, and lots of cost.  But it will work, 
pretty much like it works today.

My advice is that, as an industry, we should agree on a path to improving 
these transactions.  Initially, given all the new requirements in the 837 we 
should agree to a relatively low success rate as being "good enough".  For 
instance, if an 837 has 75% good claims inside, the entire 837 should be 
acceptable, and the 25% bad claims should be rejected individually or 
corrected by the payer.  If the 837 has more than 25% bad claims, the entire 
837 should be sent back to the provider until they do their homework a little 
better.

As time goes by, the bar should be gradually raised.  For instance by 5-10% 
every 6 months, until we get to a 95% acceptance rate.  Then, perhaps the bar 
should be raised a little more, to 97-98% acceptance rate.

What are the right numbers?  Is 75% the starting point?  How much to raise the 
bar and when?  These are the sorts of decisions that are best left to an 
industry consensus such as WEDI SNIP.

There is probably support in the law for such a thing.  I am not a lawyer, but 
it seems like a goal of 95% compliance is in line with a "reasonable" effort 
to comply with the law, and I don't think a judge would penalize somebody 
that is making a reasonable compliance effort.  But what do I know?

So, as a receiver of the transaction, you can take the heroic stance and 
become the HIPAA Cerberus (mythological multi headed dog guarding the gate) 
or you can take a more pragmatic approach and take better advantage of the 
benefits that administrative simplification offers today.  As time goes by, 
the situation will improve.

In the mean time, this email is a call for action.  The SNIP leadership ought 
to look into this issue and make some recommendations.  Soon.

Just my opinion.

Kepa Zubeldia
Claredi



On Thursday 13 March 2003 10:40 am, Linda Young wrote:
> I would really appreciate your help on this very basic question.
> 
> As part of HIPAA compliance I understand that we must send compliant 
> outbound EDI transactions.  My question is, are we supposed to reject 
> inbound transactions that are not HIPAA compliant?  Can anyone point me to 
> a section in the final rule or federal register (or any HIPAA official 
> document or IG) that states that we should reject inbound transactions that 
are 
> not HIPAA compliant?
> 
> Thanks
> 
> Linda


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