HIPAA standards offer more accuracy and eventual cost savings

More than four years after passage of the Health Insurance Portability and Accountability Act (HIPAA), HHS has yet to issue final rules regarding implementation of many of the statute's provisions. Of immediate concern to the healthcare industry are the final rules regarding electronic transactions and privacy and the proposed rule regarding security. The electronic transactions final rule addresses seven transaction types covered by HIPAA. The final rule mandates the use of standard implementation guides developed by the American National Standards Institute and specifies which code sets are to be used with each type of transaction. Under the security proposed rule, covered entities would be required to develop a security plan addressing four specific areas. Under the privacy final rule, covered entities must meet specific requirements regarding patients rights, including obtaining consent or, in some instances, authorization to use and disclose patients' personal health information.