HIPAA.ORG EDI Practice Management System Directory


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HIPAA Transactions and Code Sets:

The HIPAA transactions and code set standards are rules that standardize the electronic exchange of health-related administrative information, such as claims forms.  The rules are based on electronic data interchange (EDI) standards, which allow for the exchange of information from computer-to-computer without human involvement.

A "transaction" is an electronic business document.   Under HIPAA, a handful of standardized transactions will replace hundreds of proprietary, non-standard transactions currently in use. For example, the HCFA 1500 claims form/file will be replaced by the X12 837 claim/encounter transaction.  Each of the HIPAA standard transactions has a name, a number, and a business or administrative use.   Those of importance in a medical practice are listed in the table below.

Name of transaction

Number

Business use

Claim/encounter

X12 837

For submitting claim to health plan, insurer, or other payer

 

Eligibility inquiry and response

X12 270 and 271

For inquiring of a health plan the status of a patient.s eligibility for benefits and details regarding the types of services covered, and for receiving information in response from the health plan or payer.

 

Claim status inquiry and response

X12 276 and 277

For inquiring about and monitoring outstanding claims (where is the claim?  Why haven.t you paid us?) and for receiving information in response from the health plan or payer.  Claims status codes are now standardized for all payers.

Referrals and prior authorizations

X12 278

For obtaining referrals and authorizations accurately and quickly, and for receiving prior authorization responses from the payer or utilization management organization (UMO) used by a payer.

 

Health care payment and remittance advice

X12 835

For replacing paper EOB/EOPs and explaining all adjustment data from payers.  Also, permits auto-posting of payments to accounts receivable system.

 

Health claims attachments (proposed)

 

X12 275

 

For sending detailed clinical information in support of claims, in response to payment denials, and other similar uses.