HIPAA transaction standards: legislative mandate with a silver lining.
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The Health Insurance Portability and Accountability Act (HIPAA) may have an overall negative financial impact on health care providers across the board because of the significant amount of capital expenditures that could be required to ensure compliance (including, potentially, a complete overhaul of many organizations' technological, process, and security systems). The impact of HIPAA on an individual health care system will be determined by the current state of that organization's information technology system, as well as its preparedness in the coming months. Although it is extremely difficult to estimate total systemwide costs of HIPAA compliance, estimates range from $5.8 billion to $43 billion.
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Seeking to keep his promise to give states more flexibility while expanding health insurance coverage to low-income people, President George W. Bush released a proposal to reform Medicaid and The Children's Health Insurance Program. This initiative, the Health Insurance Flexibility and Accountability Act (HIFA), represents a significant change in Medicaid policy. Whether states will find this proposal a useful tool to expand coverage remains to be seen.
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Too much paperwork, not enough time. For providers, it may come with the territory, but there may be relief in sight. HHS' new Advisory Committee on Regulatory Reform will take up the prickly problem as the latest battle to unburden the healthcare industry from needless distractions gears up.