Thursday, November 29, 2012

HIPAA Compliance: Yet Again


     Once upon a time, there was a law enacted that protected personal health information. While setting out to ensure individual privacy, HIPAA has morphed into a reporting headache that continues to repeat.
Because of the law’s complexity, it has been implemented in stages. The latest stage to appear on the horizon – compliance with Version 5010 – adoption of an electronic transaction standard  for, among other things, Medicaid pharmacy subrogation. Also, the rule adopted two standards for billing retail pharmacy supplies and professional services.

By all accounts, 5010 is a more complicated version of the current 4010A1 standards. Changes include codes designating principal diagnosis, admitting diagnosis, external cause of injury, and reason for visit. That means new codes. Therein lies the latest challenge.

Adoption of the new ICD-10 codes, effective October 1, 2014, will require changes across the entirety of the healthcare industry. If you deal with HIPAA – even non-Medicare/Medicaid HIPAA – the changes will affect you. What companies should be doing now:

Early adoption. In its tenth revision, the ICD-10 codes, set forth by World Health Organization, are now expected to be in place by the 2014 date. All “HIPAA covered entities” must use the codes. The sooner companies adopt the structure, the more time there is to learn a more complex code set.

Test and implement. The law has warned that “if you are not ready, your claims will not be paid. Preparing now can help you avoid potential reimbursement issues.” Despite the deadline moving (the previous deadline for implementation was October 1, 2013), companies adopting the standard sooner can avoid denial of claim issues when the new law finally takes effect.

Train staff. Transitions can be tough, especially when using new coding structures. Set up training sessions and provide printouts of the new processes and codes to all employees. The ICD-10 codes amass over 14,000 codes – much more than typical coding structures. Thus, the learning curve could be steep.

Plan a side-by-side, gradual implementation. Probably the best way to transition is by building a plan that allows for partial transitions of the business over to the new coding system. The goal is to maintain claims and work flow while the transition is occurring.

Enlist help. It’s daunting to run a business while learning an entirely new electronic structure. Look for HIPAA specialists who can help train and transition your company faster. 

While HIPAA, like other regulations, is an ever-changing environment, companies can stay compliant with a bit of planning. When in doubt, get help. Compliance means fewer denials, which results in a smoother workflow.