[Congressional Record (Bound Edition), Volume 147 (2001), Part 18]
[Senate]
[Pages 25081-25082]
[From the U.S. Government Publishing Office, www.gpo.gov]



              ADMINISTRATIVE SIMPLIFICATION COMPLIANCE ACT

  Mr. REID. Madam President, I ask unanimous consent that the Senate 
immediately proceed to Calendar No. 256, H.R. 3323.
  The PRESIDING OFFICER. The clerk will state the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 3323) to ensure that covered entities comply 
     with the standards for electronic health care transactions 
     and code sets adopted under part C of title XI of the Social 
     Security Act, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. REID. Madam President, I ask unanimous consent that the bill be 
read the third time and passed, the motion to reconsider be laid upon 
the table, and that any statements relating thereto be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 3323) was read the third time and passed.
  Mr. DORGAN. Madam President, today the Senate has passed H.R. 3323, a 
bill that waives the penalties for state health programs, health care 
providers, and health plans that are unable to comply with the 
transactions and code sets regulation of the Health Insurance 
Portability and Accountability Act by October 16, 2002. This bill is 
different from the bill passed by the Senate on November 27, and 
frankly, I would prefer that we simply provide the one-year extension 
to those entities that need it, as provided for in the Senate bill. 
However, the time remaining in this session of Congress is short, and 
the House bill will offer a measure of help to those in our states.
  The House bill would require that, in order to receive a waiver, 
those entities needing more time to comply with the transactions and 
code sets regulation would have to submit a plan to the Secretary of 
Health and Human Services explaining how they plan to come into 
compliance by October 16, 2003. When Senator Craig and I first 
introduced legislation on this issue more than six months ago, we are 
attempting to help alleviate a burden on covered entities. It is not 
our intention in passing this bill to place a significant new burden on 
health care providers, states, and health plans.
  Mr. CRAIG. Madam President, I share Senator Dorgan's concern that the 
compliance plans called for in the House bill not be unduly burdensome. 
The terrorist attacks of September 11th, and concern about 
bioterrorism, are putting an additional pressure on our already 
overtaxed public health system, so imposing new burdens is something we 
should try to minimize. Therefore, we strongly encourage Health and 
Human Services Secretary Thompson to ensure that the requirement to 
file a compliance plan imposes as little a burden as possible.
  Mr. BAYH. I want to associate myself with the remarks of my 
colleagues, Senators Dorgan and Craig. As a former governor, I also 
want to raise a

[[Page 25082]]

potential concern that has been brought to my attention by some states. 
The Medicaid program is explicitly covered by HIPAA, but there are many 
other state programs with health components that may or may not be 
covered. Before states go through the potentially unnecessary work of 
submitting compliance plans that may not be needed, I feel strongly 
that HHS should provide guidance to states about what other plans are 
required. In addition, HHS should provide technical assistance as to 
what resources states can use for developing the compliance plans 
called for by the House bill. States should submit their plans for the 
Medicaid program and receive guidance from the HHS before submitting 
state plans that deal with other programs. Only with the appropriate 
and critical information can HHS and the states create a successful 
partnership.
  Mr. DORGAN. I thank the Senator for raising this important concern. I 
agree that HHS should provide states with the necessary guidance. I 
also want to note that when Senator Craig and I first introduced 
legislation on this issue it was our intention not to affect the 
implementation of the medical privacy regulation. I'm pleased that this 
bill accomplishes that goal, and the medical records privacy rule will 
not be delayed or affected in any way.
  Mr. CRAIG. I, too, am glad that we have been able to protect the 
privacy rule, and I want to make one final point in that regard. 
Nothing in this

bill is designed to create any new covered entities under the privacy 
rule. Our intention in safeguarding the privacy rule was to keep it 
intact but not to expand the class of covered entities currently 
contemplated by it.
  Mr. DORGAN. In closing, I thank Senator Craig for his long and hard 
work on this issue, as well as Senators Baucus, Grassley, Kennedy, and 
the many cosponsors of our original legislation, for their help in 
reaching enactment of this bill.

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