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Operating Rules Mandate
ACA Federal Mandate for Healthcare Operating Rules
The Patient Protection and Affordable Care Act (ACA), Section 1104 “…establishes new requirements for administrative transactions that will improve the utility of the existing HIPAA transactions and reduce administrative costs.” ACA Section 1104 requires the Secretary of the Department of Health and Human Services (HHS) to adopt and regularly update standards, implementation specifications, and operating rules for the electronic exchange and use of health information for the purposes of financial and administrative transactions. ACA Section 1104 applies to HIPAA covered entities and business associates engaging in HIPAA standard transactions on behalf of covered entities.
Operating rules are defined in the Affordable Care Act as the “necessary business rules and guidelines for the electronic exchange of information that are not defined by a standard or its implementation specifications." Operating rules specify the information that must be included when conducting standard transactions covered under HIPAA, making it easier for providers to use electronic means to handle administrative transactions.
View the CMS website for more detail on the Administrative Simplification provisions of the ACA.
Learn how CMS enforces Administrative Simplification requirements by watching this video.
ACA Section 1104 Transactions Requiring Operating Rules
ACA Section 1104 required development of operating rules to address and support administrative transactions covered under HIPAA. CAQH CORE is designated by the Secretary of the Department of Health and Human Services (HHS) as the Operating Rule Authoring Entity for the HIPAA-mandated administrative transactions.
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