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Minnesota AUC Administrative Simplification

AUC 1st Quarter 2002 Update

The information contained in this document represents the major activities of the Minnesota AUC for the first quarter 2002. Any questions or concerns about the AUC can be directed to the Minnesota Department of Health at or (651) 282-6343.

AUC member organizations, in conjunction with the Insurance Federation of Minnesota, submitted legislation to clarify Minnesota Statutes Section 62J.535, the Uniform Billing section, of the Minnesota Administrative Simplification Act. This legislation clarifies that HIPAA non-covered entities are not required to accept or submit HIPAA electronic transactions. The legislation further states that if non-covered entities do want to engage in electronic transactions, they do need to adopt and follow the ANSI standards. The legislation amends Minnesota Statutes Section 62J.581, by clarifying and giving a clear effective date for the uniform paper remittance and explanation of benefits. Finally, the legislation amends section 62J.51, the definition of the uniform dental billing form to clarify that it is the most current version of the ADA dental claim form. Governor Ventura signed this legislation into law on April 1. For the entire amendment to 62J.535 go to:

Compliance with Minnesota Statutes Section 62J
The AUC is asking all MN payers and providers to document the extent to which they are in compliance with the billing formats specified in Minnesota Statutes, Section 62J.52. A sub-group of the AUC will collect and analyze the data in the 2nd quarter of 2002 and report to the full AUC.

Place of Service Code for Urgent Care
CMS (Centers for Medicare and Medicaid Services) has approved a new place of service code for urgent care. In 1999, the AUC requested two new place of service codes, one for urgent care office and one for urgent care hospital. CMS created one code for Urgent Care Facility. Please note that not all payers are able to accept the new place of service code at this time. Check with individual payers for more specific information. For the full definition of the new code go to:

The Data Definitions TAG completed the units definition grid. The grid may be added to the HCFA 1500 manual when it is published in the fall of 2002. The DD TAG is currently updating the HCFA 1500 manual. The 5th Edition of the manual will be published in the 4th quarter of 2002.

HIPAA Update
At the national level, CMS released the Model Compliance Plan for HIPAA covered entities to file for an extension in accordance with the Administrative Simplification Compliance Act (ASCA). This will be a permanent agenda item for the AUC in 2002.

At the state level, HIPAA education continued in the 1st quarter. The Minnesota Center for Health Care Electronic Commerce (MCHEC) continued the HIPAA Education and Awareness Program. Twelve cities around the state were selected as regional points to host a series of one-day and half-day "HIPAA Essentials II" workshops. More than 1,500 health care professionals that attended this round of seminars. This seminar focused on the most important and immediate next steps (beyond awareness) that organizations should be working on, including gap analysis and implementation testing. For more information visit or call our HIPAA Workshop Hotline at (651) 917-6703.
The National Uniform Claim Committee (NUCC) conducted a gap analysis of the paper claim and the electronic 837. As a result of this analysis, the NUCC has recommend the development of a national HCFA 1500 manual. The Minnesota HCFA1500 manual was forwarded to the committee for review and potential use moving forward with the national manual.

EOB / REMIT Work Group
The EOB / REMIT work group continues to follow developments at the national level on the HIPAA Transactions and Code Sets delay. The new MN legislation makes the EOB / REMIT manual effective October 16, 2004. Stacey Scott, DHS and Brenda Elfton, Mayo Clinic Co-Chair the EOB / REMIT Work Group.

Mental Health TAG
The Mental Health TAG continues to develop a standard outpatient mental health and chemical health authorization form. The next step is to complete a crosswalk to the electronic 278 HIPAA transaction.

Dental TAG
The Dental TAG met and is in the process of updating the Minnesota dental claim form manual. Minnesota Statutes, Section 62J.52, Subdivision 3 (b), required the AUC to develop this manual.

The 2002 HCPCS Manual is complete and available at Minnesota's Bookstore. Copies of the "Closed Item List" from January through December 2001 are now available on the AUC website at This will be updated quarterly.

The NUBC (National Uniform Billing Committee) approved Minnesota's request for revenue codes for a variety of alternate therapies (including massage therapy, aromatherapy, biofeedback and acupuncture). The new codes will be four digits, beginning with a "2" (2XXX) and are effective 4/1/2002.

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