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Healthcare Era

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Submitted By zatara2012
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New legislation, intended to promote wide-scale adoption of electronic transactions, mandates the adoption of healthcare operating rules by January 1, 2014, and the identification of a healthcare EFT standard by January 1, 2012.
These developments mean that financial institutions should act now to ensure that they are ready to provide the remittance information in the Payment Information Field of the CCD+ if requested by the Receiver.Failure to provide the information upon request constitutes a NACHA Rules violation[1], potentially subjecting the RDFI to penalties for non-compliance through the National System of Fines.Here’s what you need to know to successfully navigate this change.
The Timeline
Section 1104 of the Patient Protection and Affordable Care Act (PPACA) identifies specific ways to address the goals of Administrative Simplification. This section of the legislation includes an industry mandate for developing and using healthcare operating rules to help implement HIPAA standards and identify a healthcare EFT standard.The legislation outlines three sets of healthcare industry operating rules slated for approval by the Department of Health and Human Services (HHS), which the healthcare industry will implement. The second set of rules addresses Electronic Funds Transfer (EFT) and Electronic Remittance Advice (ERA).HHS must adopt operating rules for both of these transactions by July 2012. The new legislation requires all Health Plans to implement and support EFT and ERA healthcare operating rules no later than January 1, 2014.The timeline below will help with planning and implementation efforts: Section 1104 Transactions Requiring Operating Rules Eligibility and Claims Status
EFT/ERA
Adoption Deadline
July 1, 2011
July 1, 2012
Effective Date
January 1, 2013
January 1, 2014 View a graphic depiction of the timeline.
The Healthcare Operating Rules
In March 2011, the National Committee on Vital and Health Statistics (NCVHS) charged CAQH CORE— in collaboration with NACHA— to author the healthcare EFT and ERA operating rules. NCVHS received the draft healthcare rules by the Aug 1, 2011, deadline.To begin the planning process, CAQH CORE convened a work group of 120 participants, representing Health Plans, Provider Associations, financial institutions, healthcare clearinghouses, standards organizations, pharmacies, dental associations, and NACHA. The group met weekly from April to September to develop CORE healthcare operating rules that addressed specific industry pain points that they could complete within the limited timeframe.The group identified five key issues and submitted the draft CORE EFT and ERA healthcare operating rules on deadline. The rules addressed EFT and ERA enrollment challenges, consistent use of CARCs and RARCs codes in claims adjustments and payments, and Provider challenges matching the EFT claim payment with the remittance advice.
Five Key Issues Addressed by the Healthcare Operating Rules
- See more at: https://healthcare.nacha.org/eft-and-era-healthcare-operating-rules-adoption#sthash.DwhvSxSN.dpuf

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