![]() As a result, administrative functions of the healthcare system were streamlined, and efficiency improved.Īll entities covered under HIPAA must use the same codes and standards to ensure consistency and uniformity as health information is transferred between various providers and insurance companies. Without it, employees lost their insurance coverage while looking for a new job or waiting to start a new one.Īdditionally, HIPAA was introduced to prevent fraud in the healthcare system and to make sure a patient’s medical information was secure and restricted to authorized individuals only.Īnother benefit was that HIPAA helped the industry transition over to electronic healthcare records instead of paper ones. The legislation was enacted in 1996 to address one specific issue: insurance coverage for people in between jobs. Different transaction modes are point-to-point EDI, web-based-EDI, EDI via AS/2, EDI VAN, and mobile EDI. ![]() ![]() The Health Insurance Portability and Accountability Act (HIPAA) further necessitated the standardization of forms and paperwork transmitted electronically.ĮDI healthcare transactions are not performed by mail exchanges. Paper forms severely crippled these businesses because they wasted a lot of time. Naturally, the healthcare industry processes extraordinarily high amounts of paperwork in the form of medical records, healthcare claims, reimbursements from health insurance, and more.
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