[Congressional Record Volume 147, Number 177 (Wednesday, December 19, 2001)]
[Senate]
[Page S13690]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              ADMINISTRATIVE SIMPLIFICATION COMPLIANCE ACT

  Mr. BINGAMAN. Mr. President, on December 12, 2001, the Senate passed 
the Administrative Simplification Compliance Act, by unanimous consent. 
As the title states, this is a bill about compliance with the 
``Administrative Simplification Act'' and not a proposal to delay 
enforcement of it.
  This bill permits healthcare organizations, health plans, providers 
and clearinghouses, which cannot meet the current deadline for 
compliance with the transactions and code sets rule, to seek and obtain 
a one-year delay. Such flexibility was necessary due to the complexity 
and novel nature of the changes mandated under the Administrative 
Simplification Act. At the same time, certain provisions were built 
into the rule to allay concerns that entitles that request the delay 
may merely continue to avoid preparing for compliance. The first of the 
provisions designed to provide compliance impetus is the requirement to 
submit a plan no later than October 16, 2002, stating, among other 
things, how the covered entity will come into compliance by October 16, 
2003.
  These plans must include: (1) an analysis reflecting the extent to 
which, and the reasons, why, the person is not in compliance; (2) a 
budget, schedule, work plan, and implementation strategy for achieving 
compliance; (3) whether the person plans to use or might use a 
contractor or other vendor to assist the person in achieving 
compliance; and (4) a timeframe for testing that begins not later than 
April 15, 2003.
  I am concerned that there will be a year in which some covered 
entities are using compliant standard transactions, as prescribed by 
the Administrative Simplification Act, and others who are not compliant 
and sought the delay according to them by H.R. 3323. For those in 
compliance, it is important that they are not penalized for using a 
compliant standard transaction format, as prescribed by the 
Administrative Simplification Act, after the original compliance date 
of October 15, 2002. That is, transactions should not be rejected, 
burdened, or penalized with additional costs, for being in conformity 
to the standard transaction format.
  In order to avoid burdening complying health care entities, those 
entities seeking delay should also set forth how they will accept and 
not unduly burden conforming transactions from compliant health care 
entities between October 16, 2002, and October 16, 2003.
  I look forward to working with my colleagues to ensure that 
Administrative Simplification Act accomplishes what it was set out to 
do, which is to save money for covered entities on transactions costs, 
provided administrative efficiency, and protect the privacy of 
personally identifiable health information.

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