Health and Human Services

The Department of Health and Human Services (HHS) recently published an interim final rule with comment period entitled “Administrative Simplification: Adoption of Standards for Health Care Electronic Funds Transfers (EFTs) and Remittance Advice.”  The rule establishes streamlined standards for the format and content of transmissions that health plans send to financial institutions when making electronic funds transfers.  Health plans often initiate electronic funds transfers — which involves an electronic order or authorization for a financial institution to credit or debit an account — when they pay claims to health care providers. 

The rule also requires the use of trace numbers to associate electronic funds transfers with related “remittance advice,” which is the term used for the notice that health plans send to health care providers explaining how much the plan is paying.  Currently, many health care providers expend considerable resources to “re-associate” related electronic funds transfers and remittance advice that are sent in separate communications.

As an interim final rule with comment period, the rule is final as of its effective date, but HHS has invited the public to provide comments by March 12, 2012.  HHS could change the rule, but, in the absence of such changes, covered entities must comply with the regulation by January 1, 2014.Continue Reading HHS Publishes Standards for Health Care Electronic Funds Transfers and Remittance Advice

By Anna Kraus

Last week, the Office of Inspector General (OIG) within the Department of Health and Human Services (HHS) issued two audit reports regarding federally mandated data security measures for health information.  Both reports are highly critical of HHS’s efforts to protect the security of electronic health information.

In the first report, available here