The ASCA Compliance Plans, Testing, and Transactions Deployment The Sixth National HIPAA Summit March 27, 2003 Kepa Zubeldia, MD, Claredi.

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The ASCA Compliance Plans, Testing, and Transactions Deployment The Sixth National HIPAA Summit March 27, 2003 Kepa Zubeldia, MD, Claredi

Topics ASCA Compliance Plans Tables Testing options under HIPAA The ASCA extension and testing The WEDI SNIP testing model Myths Measuring progress

Summary of ASCA data Entity TypePercentNumber Clearinghouse – Health Plan0.0%258 None0.2%1,207 Clearinghouse – Health Plan – Provider0.3%1,525 Health Plan Provider0.5%2,631 Clearinghouse1.0%5,478 Health Plan6.5%35,928 Provider91.4%501, ,644

Provider Types Provider TypePercentNumber Hospice0.4%1,459 Home Health Agency1.6%6,612 Hospital1.9%8,052 DME Supplier2.5%10,513 Nursing Home2.8%11,642 Pharmacy3.4%14,090 Dentist8.5%35,443 Other34.6%143,805 Physician/Group Practice44.2%183, ,308

Multiple Reasons for Delay Number of ReasonsRespondents 1123, , , , , , , ,401 96, , , Median 90%

Reason for Delay Percent Implementation Time67.5 Waiting on Vendor47.1 Standards Information46.0 Testing Time40.6 Clarification34.5 Waiting on Clearinghouse33.2 Money16.6 Hardware15.7 Staff12.3 Data Requirements9.4 Other8.1 Codeset Implementation6.7

Estimated Cost Estimated Cost Range Percent of Respondents <$10, $10,000 - $100, $100,000 - $500, $500,000 - $1M1.7 Over $1M2.4 Don’t Know35.0

Estimated days to complete PhaseNum Days Max 95%75%50%25%5% Min Awareness208, Operational444,9413, Testing531,1403, All Three300,5842,

The ASCA extension The ASCA says that the compliance plan filed must include a timeframe for testing beginning no later than 4/16/2003. –Testing was not required under HIPAA Not specified in ASCA –Internal testing –External testing (Testing with Trading Partners)

The ASCA extension Did YOU file for the ASCA extension? –What is YOUR plan for testing the transactions? If a vendor is testing… –Vendors are not Covered Entities –Does the provider / client need to test? –Does the clearinghouse or vendor testing cover all of its clients?

HIPAA - ASCA Testing Options No testing of transactions. –“Testing is not required by HIPAA.” mantra. Testing by “sympathy” –Other people with the same vendor have tested already. Why should I test? Testing my first couple of connections –I expect them to be all the same. Testing every single connection. –Time consuming, difficult, expensive. Compliance testing and certification –Followed by trading partner testing. SNIP model.

Testing today Find trading partner that agrees to test with you –Typically one that will eventually benefit from your transactions. –They must be ready. Or “readier” than you are. Send or get test files Get test report from/to trading partner Correct errors found with trading partner Repeat the cycle until no more errors

Graphical view EDI Submitter contract Telecom / connectivity X12 syntax HIPAA syntax Situational requirements Code sets Balancing Line of business testing Trading partner specifics 1-2 days 3-4 days 2-3 weeks 3-4 weeks

Testing with multiple Trading Partners TP Specific Common in HIPAA (2-3 weeks each)

Industry Business Relationships PayersHMOsCMSPhysicianHospitalPharmacy

Real world Clearinghouse Payer Provider Billing Service P P P P P Simplified Connectivity Model VAN

Gartner Research “For HIPAA to work, more than 13 million pairs of a payer and a provider must implement an average of 2.2 transactions each.” –Assuming only one analyst day per transaction, the industry would need 2.9 Million analyst months to implement HIPAA Research Note K

Eligibility Verification Service Billing/ Claim Submission Accounts Receivable Enrollment Claim Acceptance Accounts Payable Enrollment Claim Status Inquiries Adjudication Pretreatment Authorization and Referrals Precertification and Adjudication PROVIDERSINSURANCE AND PAYERSSPONSORS Pharmacy NCPDP

The SNIP testing approach Compliance testing –Testing your own system first. Independent from trading partners. Start testing now. –Structured testing, complete testing. 7 Types. –Test against HIPAA Implementation Guides. Business to Business testing –Assume both trading partners are already compliant. Don’t repeat the compliance testing part. –Test only peculiar TP issues. –Test against Companion Documents

SNIP Compliance testing “Types” of testing defined by WEDI/SNIP: 1.EDI syntax integrity 2.HIPAA syntactical requirements Loop limits, valid segments, elements, codes, qualifiers 3.Balancing of amounts Claim, remittance, COB, etc. 4.Situational requirements Inter-segment dependencies 5.External Code sets X12, ICD-9, CPT4, HCPCS, Reason Codes, others 6.Product Type, Specialty, or Line of Business Oxygen, spinal manipulation, ambulance, anesthesia, DME, etc. 7.Trading Partner Specific Medicare, Medicaid, Indian Health, in the HIPAA IGs.

The ideal HIPAA scenario Trading Partner Business to Business testing Compliance testing

The cell phone model

Testing with multiple Trading Partners TP Specific Common in HIPAA (2-3 weeks each)

Certification prior to Testing with multiple Trading Partners TP Specific Common in HIPAA (2-3 weeks total)

Certification prior to Testing with multiple Trading Partners TP Specific Common in HIPAA

Certification is Third party verification of the demonstrated capabilities to send or receive a subset of the HIPAA transactions, for specific business purposes, in compliance with the HIPAA Implementation Guides Testing. It does not replace testing. Complements testing. A guarantee that all transactions will be forever perfect. The assurance that the receiving trading partner will accept the transactions. Certification is not

The “vendor will fix it” myth My vendor / clearinghouse is HIPAA compliant. Why should I have to worry about it? They are going to take care of my HIPAA EDI compliance for me. –Providers and payers MUST get involved. –This is NOT an IT problem. It’s not Y2K –There are profound business implications in HIPAA. –Liability for Clearinghouses and vendors due to the unrealistic expectations of providers

The “Blanket Approval” myth (Is certifying of the vendor/clearinghouse enough?) The issue is Provider Compliance –Provider’s responsibility to be HIPAA compliant Each Provider is different –Different provider specialty  different requirements –Different software version  different data stream and contents –Different EDI format to clearinghouse  different content capabilities –Different provider site install  different customization –Different users  different use of code sets, different data captured, different practices, etc. Vendor’s capabilities not the same as provider’s –Vendor or clearinghouse has the aggregate capabilities of all its customers –The Provider does not have all of the clearinghouse or vendor capabilities

Kinds of compliance Compliant by coincidence –Providers only Office visits, simple claims –Perhaps as high as 60%? Compliant by design –Need remediation effort Software upgrade, new formats, etc. –Maybe about 40%? How can you tell the difference? When can you tell the difference?

Progress not perfection Perfection may be impossible –Industry standard is 95% today Incremental progress –Implement some transactions, not others –Implement some Bill Types, not others Not all claims will be compliant –Gap filling issues –Implementation guide errors –Legacy data, data errors

Measuring Progress Measure your own transactions –Inbound –Outbound Measure against what? –Reference testing and certification svc. –Trading partners’ rejections Start at 80-85% acceptance rate –Increment by 5% every 6 months

How are you doing? EDI implementation of the claim takes about 6 months –Compare with 2-3 weeks for NSF or UB92 Waiting for your trading partners? –Are they waiting for you? What is your plan to start testing? –ASCA deadline April 15, 2003 Avoid last minute rush!

One locust is called a grasshopper. Put a few thousand in one place and we call it…

A Plague.