Dear AuntMinnie Member,
As the eastern U.S. braces for the imminent arrival of Hurricane Isabel, another potential disaster is looming on the horizon: the implementation of transaction standards for the Health Insurance Portability and Accountability Act. The new HIPAA rules are scheduled to strike on October 16, and like the hurricane, the aftermath may not be pretty.
The problem is that many insurance payors simply aren’t ready to comply with all of the law’s provisions, especially the requirement that all claims be submitted electronically. Officials with the Centers for Medicare and Medicaid Services have warned of a looming financial "train wreck" that could leave healthcare providers unable to get paid for services rendered.
Yet despite the gloomy forecast, there are steps radiology practices can take to prepare themselves, according to James Wieland, legal counsel for the Radiology Business Management Association. Wieland spoke at this week’s RBMA fall educational conference in Philadelphia. Staff editor Erik L. Ridley was on hand to report for our RIS Digital Community.
Practices can start by examining the trading-partner agreements they have with payors, especially the sections on how to submit claims. They should also familiarize themselves with any contingency plans their payors have developed to maintain a smooth flow of payments if they have trouble complying with the transaction rules.
Providers should also mark their calendars for September 25, the date CMS will announce its contingency plan for Medicare and Medicaid payments in the event there are problems meeting the requirements of the transaction standard.
Finally, providers might want to secure a line of credit to ensure that they have access to cash in case disruptions in payments occur, Wieland said. For the rest of the story, just go to our RIS Digital Community, at http://ris.auntminnie.com.
