CMS' Office of E-Health Standards and Services Announces 90-Day Period of 
Enforcement Discretion for Compliance with New HIPAA Transaction Standards

On Thursday, November 17, 2011, the CMS Office of E-Health Standards and 
Services (OESS) announced that it would not initiate enforcement action until 
Saturday, March 31, 2012, with respect to any HIPAA covered entity that is not 
in compliance  with the ASC X12 Version 5010 (Version 5010), NCPDP Telecom D.0 
(NCPDP D.0), and NCPDP Medicaid Subrogation 3.0 (NCPDP 3.0) standards.  
Notwithstanding OESS' discretionary application of its enforcement authority, 
the compliance date for use of these new standards remains Sunday, January 1, 
2012 (small health plans have until Tuesday, January 1, 2013 to comply with 
NCPDP 3.0).

CMS' Office of E-Health Standards and Services is the U.S. Department of Health 
and Human Services' component that enforces compliance with HIPAA transaction 
and code set standards.

OESS encourages all covered entities to continue working with their trading 
partners to become compliant with the new HIPAA standards, and to determine 
their readiness to accept the new standards as of Sunday, January 1, 2012.  
While enforcement action will not be taken, OESS will continue to accept 
complaints associated with compliance with Version 5010, NCPDP D.0, and NCPDP 
3.0 transaction standards during the 90-day period beginning Sunday, January 1, 
2012.  If requested by OESS, covered entities that are the subject of 
complaints (known as "filed-against entities") must produce evidence of either 
compliance or a good faith effort to become compliant with the new HIPAA 
standards during the 90-day period.

OESS made the decision for a discretionary enforcement period based on industry 
feedback revealing that, with only about 45 days remaining before the Sunday, 
January 1, 2012 compliance date, testing between some covered entities and 
their trading partners has not yet reached a threshold whereby a majority of 
covered entities would be able to be in compliance by Sunday, January 1, 2012.  
Feedback indicates that the number of submitters, the volume of transactions, 
and other testing data used as indicators of the industry's readiness to comply 
with the new standards have been low across some industry sectors.  OESS has 
also received reports that many covered entities are still awaiting software 
upgrades.

Version 5010, NCPDP Telecom D.0 and NCPDP Medicaid Subrogation 3.0 standards 
represent significant improvement over the current standard versions.   NCPDP 
Telecom D.0 addresses certain pharmacy industry needs.  NCPDP Medicaid 
Subrogation 3.0 allows state Medicaid programs to recoup payments for pharmacy 
services in cases where a third party payer has primary financial 
responsibility.   Version 5010 in particular provides more functionality for 
transactions such as eligibility requests and healthcare claims status.   
Implementation of Version 5010 also is a prerequisite for using the updated 
ICD-10 CM diagnosis and ICD-10-PCS inpatient procedure code set in electronic 
healthcare transactions effective Tuesday, October 1, 2013.

Links to information on Version 5010, NCPDP D.0, and NCPDP 3.0 are available at 
www.CMS.gov/ICD10<http://www.cms.gov/ICD10>.




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Each Office Visit is an Opportunity. Medicare patients give many reasons for 
not getting their annual flu vaccination, but the fact is that flu seasons are 
unpredictable and can be severe. Each year, it is estimated that 90 percent of 
seasonal flu-related deaths and more than 60 percent of seasonal flu-related 
hospitalizations occur in people 65 years and older. Please talk with your 
Medicare patients about the importance of getting their annual flu vaccination. 
And remember, vaccination is important for healthcare workers too, who may 
spread the flu to high risk patients. Don't forget to immunize yourself and 
your staff. Protect your patients. Protect your family. Protect yourself. Get 
the Flu Vaccine-Not the Flu.


Remember - The flu vaccine plus its administration are covered Part B benefits. 
 CMS has posted the 2011-2012 seasonal flu vaccine payment limits at 
http://www.CMS.gov/McrPartBDrugAvgSalesPrice/10_VaccinesPricing.asp.  Note that 
the flu vaccine is NOT a Part D-covered drug.

For more information on coverage and billing of the flu vaccine and its 
administration, as well as related educational provider resources, visit 
http://www.CMS.gov/MLNProducts/35_PreventiveServices.asp and 
http://www.cms.gov/immunizations.




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