Compliance delays proposed, opposed - HIPAA Update - Health Insurance Portability and Accountability Act of 1996

Health Management Technology, Nov, 2001

In the aftermath of the September 11 tragedies, proposals to delay HIPAA compliance were floated anew. Unlike earlier motions for delay, however, these were met with strong resistance from healthcare provider organizations, including the American Hospital Association (AHA). If passed, the legislation (Senate bill S. 836 and matching House bill H.R. 1975) would delay compliance with HIPAA's transaction code sets until at least two years after all electronic transaction regulations under HIPAA have been issued in final form.

The AHA, the Federation of American Hospitals, VHA Inc., the Cleveland Clinic and other national provider organizations opposed the bills immediately in letters to Congress and to Health and Human Services Secretary Tommy Thompson. They say the bills could delay HIPAA indefinitely, since only two of five sets of regulations have been finalized. They also believed that any delays would unfairly penalize health systems that have already committed significant resources to meet the first compliance deadline of October 2002.

The National Governor's Association (NGA) supports the bills, saying that states need a minimum delay of two years. NGA also indicated it would return in a year seeking more time if a one-year compromise is reached.