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May 2003
Department
of Health and Human Services OIG
 HIPAA READINESS:
ADMINISTRATIVE SIMPLIFICATION FOR MEDICARE PART A PROVIDERS
Medicare
Part A providers are making significant progress in meeting
the HIPAA deadline. Ninety-two percent of Medicare Part A
providers are developing an implementation schedule to meet
the deadline, while approximately one-half are developing
sequencing strategies and contingency plans in the event their
system is not fully in compliance by the deadline.
Approximately 84 percent are using systems vendors as part of
their compliance strategy. Only 18 percent have conducted a
cost/benefit analysis for implementing the electronic
standards and code sets.
External
barriers may affect compliance
Approximately
one-third of the providers who listed potential barriers to
compliance were concerned that their trading partners could
affect their ability to meet the compliance deadline.
CONCLUSION
Overall,
the Medicare Part A providers are making steady progress toward
meeting the compliance target of October 16, 2003, for
implementing the HIPAA electronic transaction standards and code
sets. Providers are, however, concerned that their trading
partners may not be fully compliant, and this would affect their
own ability to implement the electronic standards.
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