Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, April 4, 2014

Proposed Rule for HIPAA EDI Certification


Under a newly proposed rule by the Department of Health and Human Services, a Trust's business associates who perform electronic transactions on its behalf are required to follow certain HIPAA standards and operating rules.

The proposed rule introduces a new requirement to submit compliance certification for three specific types of electronic transactions: (1) eligibility, (2) claim status, and (3) electronic fund transfers. A one-time certification must be submitted between January 1, 2015, and December 2015.

Even though the HIPAA covered electronic transactions are performed by its business associates, the Trust is responsible for obtaining certification.  The penalty for each day of noncompliance is $1 per covered life per day.

See Andrew Bignone, Cara Elias, and Christopher Humes, Trustee Alert - HIPAA EDI Certification Proposed Rule, JDSupra, March 25, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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