My legal department has determined that we are a 'group health plan' for
both the medical and dental coverage we provide to our employees and
therefore must abide by the regulations for the 834 and 820 transaction.
Based on that, we have come to several conclusions that I would like to get
confirmation on, and also have an outstanding question.

1.  We have 2 types of Flexible Spending Accounts, a Personal Spending
Account for Medical expenses and a Personal Spending Account for Dependent
Care expenses.  We utilize a vendor to administer the benefit and send them
a census file in addition to a wire transfer for the employee deductions.

   For the 834 transaction, the regulation clearly states that it is for
   the subscriber enrollment information to a health plan to establish or
   terminate insurance coverage.   We feel that the census file to the
   administrator doesn't meet the criteria since it is not for the
   enrollment or disenrollment into a health plan for insurance coverage,
   and because the administrator is not a health plan.

   For the 820 transaction, the regulation states that it is the
   transmission of certain data from the entity that is arranging for the
   provision of health care or is providing health care coverage payments
   for an individual to a health plan.   We have determined that we don't
   need to use the standard since the funds are employee deductions for
   health care costs and not premium payments, and also because the
   administrator is not a health plan.

2.  We utilize a software package provided by our bank to transfer funds
from our bank account to a health plans account for premium payments.
Does this transaction require the use of the standard 820 format or is the
financial institution excluded from being compliant?

Appreciate any input.


Brenda Joubert
Project Leader
Harvard Vanguard Medical Associates
[EMAIL PROTECTED]


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