The potential unintended consequences of this could be that translator
vendors will (obviously !!) pass this increased cost to their customers, who
will ultimately refuse to pay increased prices, which will place intense
pressures on both users/implementers of the standards and the vendors that
provide solutions to them to seek other alternatives. X12 could end up
pricing itself out of the market – especially when we consider that HL7
instituted a new policy to make all of their standards publicly available at
no cost for healthcare. It will be interesting to see how this plays out in
the marketplace.

 

Rachel Foerster

847-872-8070

 

From: EDI-L@yahoogroups.com [mailto:EDI-L@yahoogroups.com] On Behalf Of
Klaus-Dieter Naujok
Sent: Sunday, June 30, 2013 1:13 PM
To: EDI-L@yahoogroups.com
Subject: Re: [EDI-L] Standards price change?

 

  


On Jun 29, 2013, at 7:51 PM, Leah Halpin wrote:

> I would join my esteemed colleague Klaus-Dieter in asking for an
explanation of this change in policy that provides any actual value for the
annual fee.

Leah, personally I don't care what DISA (X12) uses as argument(s) for their
table data pricing. I don't question Mikes' account, it's Déjà vu for me. I
was part of the original discussion, many many years ago, by the X12 StC
when they agreed to bump up the table data price. It was the argument that
most of those buying the table data never participated in the development
but benefited through their product sales, and therefore should paying much
more then X12 members.

At that time I argued against it, making the point that in the end it will
always be the users that will buy the higher price. Further, as we have seen
over and over again, standards that price themselves too high may end up of
becoming less relevant, especially if there are "free" standards available
in the same domain area. We will see in time if the new pricing policy will
have a negative effect on implementations.

> Which, if it applies going forward, will mean 20% per version per year,
which will become less trivial as time rolls on.

Agree. Since the new pricing statement reads "Beginning with 006050, the
price covers the use of the ASC X12 EDI Standard 006050 (Product) for one
year....", we are lucky that it is not retro-active.

But for a moment, just to show how quickly this figure mushrooms, let's
assume it was retro-active for demonstration purpose. Most X12 commercial
translator support the majority, if not all, of the X12 standards, for the
005xxx and 006xxx sets, applying such a maintenance fee for this year,
besides the $800 for the current set, it would also require 9 x $160, a
total of $1754. With each new release that figure will increase by another
$160. Boy, what a "cash cow" that is.

Lucky :-) for those that require those tables, for now it is only $800, but
with each release that cost per year will increase and as Leah said "it will
become less tribal."

Klaus





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