HIPAA:  CMS issues model plan to extend deadline for compliance with electronic transaction rule

     The Centers for Medicare and Medicaid Services recently issued a model compliance plan that will allow health plans, health care clearinghouses and health care providers to receive a one-year extension to comply with the new rule governing electronic health care transactions.

     Originally, the deadline for compliance with the electronic transactions rule was October 16th of 2002 for all covered entities except small health plans, which by law have an additional year.  The new extension, authorized by the Administrative Simplification Compliance Act, last year, authorizes a one-year extension, to October 16th of 2003 - for those covered entities required to comply in 2002.  To obtain the extension, a covered entity must submit a compliance plan on or before October 15th of 2002. Covered entities may use the model plan for this purpose.

     Covered entities will be able to submit extension plans electronically through the CMS Web site at www.cms.hhs.gov/hipaa and CMS will provide an electronic confirmation of receipt of the plan.  Covered entities also have the option of submitting their own version of an extension plan that provides equivalent information and can submit a plan on paper.  Instructions for filing a plan are available on the Web site.

     The model compliance plan and instructions on how to complete it is available at the Web site.  Electronic transactions standards are one of a series of national "administrative simplification provisions included in HIPAA.  For more information on other standards, including health information privacy standards go to: http://aspe.hhs.gov/admnsimp