[Congressional Record Volume 143, Number 144 (Thursday, October 23, 1997)]
[Extensions of Remarks]
[Page E2065]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2065]]
CLARIFICATION OF THE HEALTH INFORMATION PORTABILITY AND ACCOUNTABILITY 
                                  ACT

                                 ______
                                 

                          HON. DAVID L. HOBSON

                                of ohio

                    in the house of representatives

                      Wednesday, October 22, 1997

  Mr. HOBSON. Mr. Speaker, on August 21, 1996, the Health Information 
Portability and Accountability Act became law. The health care 
administrative simplification provision of this new law is based 
largely on prior work done by my colleague Mr. Sawyer and myself.
  As is to be expected, a few people don't want to play by the rules. 
It has come to my attention that a bill that I introduced in 1995 is 
being used by some of these groups to leverage an interpretation of the 
current law to say that standards for specific administrative 
simplification transactions to be adopted under the law are voluntary 
standards. I want to make it clear that, although voluntary 
standardization was considered in the past, it was judged to be 
unworkable in the real world and is not a part of the law today for 
that reason.
  The industry has voluntary standards today. Because the standards are 
merely voluntary, a number of payers have continued to require others 
to use their individual formats, which has effectively prevented the 
industry as a whole from moving to a single, efficient electronic 
transaction environment. The splintered state of the current electronic 
interchange world is one key reason for the enactment of the 
administrative simplification provisions.
  The intent of the law is that all electronic transactions for which 
standards are specific must be conducted according to the standards. 
These standards were not imposed by the law, but instead were developed 
by a process which included significant private sector input. Providers 
are given the option of whether to conduct the transactions 
electronically or ``on paper'' but if they elect to conduct them 
electronically, they must use the standards agreed upon through the 
law. Payers are required to accept these transmissions in the standard 
format in which they are sent and must not delay a transaction or 
adversely affect a provider who wants to conduct the transactions 
electronically.
  I hope my statements today help clarify the intent of this 
legislation and work to prevent any non-compliance. There are specific 
deadlines for compliance and penalties in the law for anyone who fails 
to comply with the intent of this law. Mandatory compliance is required 
in order to meet the goals of simplifying the administration of our 
Nation's health care system and improving its efficiency and 
effectiveness.

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