That's an excellent non-answer, and one we should all take notice of!

At the SNIP WEDI HIPAA Implementation Summit in Chicago last week,
Stanley Nachimson seemed to emphasize that the most important thing
for the industry during the transition period (leading up to October
and beyond) was to keep the claims moving through the system.  CMS is
preparing an enforcement rule for publication.  All indications will
be that they will not be heavy-handed in terms of the transaction
rule.  The phrase he used was "complaint to compliant" -- they will
ask for compliance plans and help the parties with technical
assistance if necessary.

What this means on a technical level is that we should all "loosen our
edits" (at least during the time when everyone is first converting to
standard) and not reject transactions for relatively minor X12
infractions.  What that means deserves a lot of discussion and
scrutiny, and ultimately, I hope, some clear guidance from CMS.  A
wholesale conversion to paper for the sake of strict compliance is in
no ones' interest -- not providers, not payers, not clearinghouses,
and certainly not patients.

I think part of the problem is that CMS can't really (and shouldn't)
say, "Don't worry about the standards."  At the same time, there are
some pragmatic issues related to reconnecting literally hundreds of
thousands of providers with thousands of payers.  It seemed apparent
that there were times during the week when Stanley and others were
having to choose their words very carefully.  

Peter Barry presented an excellent draft of a realistic approach he is
working on; he also distributed a paper, "A Smooth Migration (Defining
'Operationally Compliant')," written by WR Braithewaite and JP Fusile
(http://www.pwchealth.com/cgi-local/hcregister.cgi?link=pdf/migration.
pdf).  The trick is to stay on the road toward full compliance while
allowing some flexibility during the transition period to keep
transactions flowing.

This may be the single most important issue we discuss for the next
several months, so please take note.

Thanks, Kepa....

-----Original Message-----
From: Kepa Zubeldia [mailto:[EMAIL PROTECTED] 
Sent: Friday, March 14, 2003 09:26
To: WEDI SNIP Transactions Workgroup List
Subject: Re: Non-compliant inbound transactions


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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