Greg,
 
In the scenario you describe, where the Medicaid agency gives the POS device to the provider, this is almost certainly DDE. This determination is not based on the kind of communication connection, it is based on the fact that your device operates as a "terminal" on the payer's network.
 
There is a lot of uncertainty about exactly what is DDE now, but if your POS system has a central controller on the provider's premises that stores and forwards transactions, or if the device does this itself, it would almost certainly not be DDE. If that were true you would be obligated to use the EDI standards unless your communication went through a clearinghouse to get to the payer.
 
I have heard that some Medicaids are creating business associate agreements with other state agencies to serve as clearinghouses. If your device was employed in such a state, the requirement to use the EDI standard would be relieved, although you would still have to provide enough content that the clearinghouse can convert the data into standard format.
 

Wes Rishel
Board Chair, Health Level 7
Vice President, Research Director
Gartner Research, Healthcare
Alameda, CA

 
-----Original Message-----
From: Greg McFaul [mailto:[EMAIL PROTECTED]]
Sent: Friday, June 21, 2002 9:55 AM
To: [EMAIL PROTECTED]
Subject: FW: Transaction Question



Hello.  
 Perhaps this is not the place to pose this question; however, could anyone advise. 
 I am a new subscriber to SNIPS.  And I apologize in advance if these questions have been raised prior, or outside this group domain.  But I do appreciate any and all comments regarding these questions.
 Our company manufactures Point of Sales (POS) that many clearinghouses and State Medicaids use to deliver Eligibility and other health care and non health care transactions.
 It seems that there are two ways a POS could deliver HIPAA X12 transactions:
 
1)  From  the POS device, deliver to the host HIPAA compliant transaction set as defined by X12
 
2) Since these devices utilize a Private Network (dial-up to a host or Clearinghouse), non HIPAA standard.  I understand this would constitute a DDE device.
 
Is this correct for?
 
 
2nd question:
 
Say I am a State Medicaid and I provide POS device to the Medicaid providers - either direct or through a MMIS prime contractor.  Do  the POS device, that are partially funded by the State and most like via the Feds, have to comply with HIPAA from the device to the host? 

Thanks,


Greg R. McFaul
VeriFone, Inc.
( Office: (509) 458-5672



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