The U.S. Congress enacted the Health Insurance Portability and Accountability Act (HIPAA) to reform the health insurance market. HIPAA requires national, uniform standards for the electronic transmission of health care information to simplify the health care administration and financial processes.
The iWay Integration Solution for HIPAA, based on these standards, promotes the integration of over 200 enterprise data and application systems.
The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, known as HIPAA) includes a provision for Administrative Simplification. This provision required the Secretary of the Department of Health and Human Services to adopt standards to support the electronic exchange of administrative and financial health care transactions, primarily between health care providers and health care plans.
HIPAA mandates the adoption of standards for such transactions and defines specifications for implementing each standard. The iWay Integration Solution for HIPAA is based on the addenda version of HIPAA 004010, which was released in October, 2002, and is referred to as 004010A1.
Administrative Simplification means adopting uniform business practices (billing, computer systems, and communication) so that providers and payers can easily interact through one another's proprietary systems.
The Administrative Simplification provisions of HIPAA standardize forms and methods of completing claims, and other payment-related documents, and assign a universal identifier to health care providers. These provisions serve to increase computer use and efficiency when exchanging health care information.
HIPAA addresses the following areas of Administrative Simplification:
The benefits of Administrative Simplification include: