HIPAA Administrative Simplification
The primary goal of the Administrative Simplification portion of HIPAA is to
simplify and streamline the administration of health care. Essentially, standards are created to
facilitate various types of health care electronic transactions. No one insurer can ask any claims
submitter to file in any other electronic formats other than those mandated by HIPAA.
A little bit of work up front will pay off in time. An experienced
service bureau or clearinghouse will be able to convert your paper claims according to the
standards set fourth by HIPAA with little effort.
Under the old system, one health care provider could require all claims submissions
to be in a HL7 format while another could require a custom text string. There were about 400
different ways to submit an electronic claim before HIPAA. Now there is one way, HIPAA's Way.