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HHS releases final security rule, transactions and code sets changes

HIPAA Weekly Advisor, February 13, 2003

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With two months left until the privacy rule's compliance date, HHS released the final security rule and transactions and code sets changes today.

"Overall, these national standards required under HIPAA will make it easier and less costly for the health care industry to process health claims and handle other transactions while assuring patients that their information will remain secure and confidential," Secretary Tommy Thompson said. "The security standards in particular will help safeguard confidential health information as the industry increasingly relies on computers for processing health care transactions."

The final security standards, which will be published in the February 20 Federal Register, work in concert with the final privacy standards and outline the procedures and mechanisms covered entities need to protect the confidentiality, integrity, and availability of PHI. Most covered entities will have until April 21, 2005, to comply, while small health plans will have an additional year.

Major provisions of the final transactions and code sets changes include:

• Repealing the National Drug Code as the standard medical data code set for reporting drugs and biologics in all non-retail pharmacy transactions
• Modified standards for premium payments and coordination of benefits transactions, which were not included in the proposed changes.

The final changes will also be published in the February 20 Federal Register.

Editor's note: Look for more details on the final security rule and transactions and code sets changes tomorrow.

Go to http://www.hipaapro.com/news/hipaa_downloads.cfm to download PDFs of both.