^SM: CRE Regulatory Action of the Week

CRE Files Petition with OMB to Stay Implementation of HIPAA Electronic Transaction Standards Issued by HHS

CRE has petitioned OMB to stay the implementation of a HIPAA regulation regarding electronic transactions standards. Although HHS has opined that the HIPAA regulations are subject to the Paperwork Reduction Act, HHS has failed to submit a package to OMB for clearance and under this statute and that constitutes a violation of the Paperwork Reduction Act. In addition, they have dramatically underestimated the burden on hospitals, doctors and health plans. It is CRE's position that HHS has violated its underlying statute in that it is promulgating regulations required by HIPAA on a piecemeal basis in lieu of issuing the totality of all regulatory requirements simultaneously. Failure to comply with this statutory directive requires that the regulated community make repeated modifications to their information systems to comply with the ever changing requirements set forth in HIPAA regulations when issued on a piecemeal basis. The CRE petition emphasizes that the failure of HHS to address the aforementioned deficiency clearly invites judicial review.