Deborah -- You are correct that group health plans are covered entities
and as such are obligated under HIPAA to accept standard transactions.
Consequently, group health plans must file an ASCA compliance plan by
10/16/02 to receive the 1 year ASCA grace period unless the group health
plan qualifies as a small health plan (<$5 million in annual revenues.) 
Small health plans automatically have a 10/16/03 compliance date. The
small health plan exemption should be available to many group health
plans which eases the burden on employers, and remember there is no
small provider exemption. I trust that insurers, HMO's and TPAs are
coordinating this process with employers, but in the words of President
Reagan, "trust but verify."

As for your second question, if the group health plan is fully insured,
then the insurer or HMO is also a  covered entity with respect to the
group health plan. If the insurer or HMO provides administrative
services only, then it is a business associate of the group health plan.
Remember if the group health plan is fully insured, then it generally is
exempt from the Privacy Rule's administrative requirements, provided
that the only PHI that the plan sponsor receives from the group health
plan (or its insurer or HMO) is enrollment data and/or summary
information as defined in the rule (� 164.504(f), 164.530(k)).

Best regards, David Ermer 
  
>>> Deborah Campbell <[EMAIL PROTECTED]> 09/03/02 01:39PM
>>>
Forgive my ignorance, but I can never seem to get my hands completely
around
this Group Health Plan thing. 

Both insured and self-funded group health plans are covered entities if
they
use an insurer or TPA to administer their plan and they have 50 or
more
participants. 

It has been made clear to me that even if a GHP uses an insurer to
administer their plan, they are still a CE and need to apply for the
TCS
extension. But here are my questions:
1) This means that almost every employer in the US will need to apply
for
the extension, or have their insurer apply on their behalf, correct?
And
this is whether they are self-funded or not. 

2) Does this make the insurer a BA of the group? 

This would mean as an insurer, we would probably need to apply for an
extension on behalf of almost every group we have and have BA
Agreements
with them all. This seems extreme, like I'm missing something.

Any help is appreciated.

Deborah Campbell
Compliance Coordinator

Dominion Dental Services, Inc.
115 South Union Street, Suite 300
Alexandria, Virginia 22314

Phn: (703) 518-5000 ext. 3035
Fax: (703) 518-8849
Toll Free:  888-518-5338
Email: [EMAIL PROTECTED] 

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