CMS Implements Contingency Plan to Smooth Transition for Practitioners to New HIPAA Rule

Although the HIPAA regulation that requires all providers to submit claims electronically in a standard format is scheduled to take effect next month, the Centers for Medicare and Medicaid Services (CMS) announced that it will implement a contingency plan to accept noncompliant electronic transactions after the October 16, 2003, compliance deadline. This plan will ensure noncompliant providers keep getting paid by Medicare when new federal standards for electronic transactions go into effect. In addition, the private payer community has responded positively to the need to post their contingency plans on how they intend to treat non-compliant HIPAA claims.

More information and guidance to physicians is available at the CMS and HIPAA Web sites.