Health Care Administrative Simplification Act (ASA)
Health care is a more than $35 billion per year enterprise in Minnesota, generating millions of administrative transactions between health care providers, payers, intermediaries, and vendors. The Health Care Administrative Simplification Act (ASA) of 1994, Minnesota Statutes 62J.50 – 62J.61 (PDF), was passed to bring about greater standardization of health care administrative transactions and more electronic exchange of administrative data, to reduce administrative costs and burden.
The Minnesota Department of Health (MDH) Health Policy Division, in collaboration with advisory and standards-setting organizations, is implementing the ASA as part of ongoing efforts to streamline and simplify health care administration.
The 2007 amendment to the Health Care Administrative Simplification Act (ASA) affects all health care providers and group purchasers
Minnesota Statutes, section 62J.536 was enacted in 2007 and amends the Health Care Administrative Simplification Act of 1994 (ASA) to require that all health care providers and group purchasers (payers) exchange health care administrative transactions electronically, using standard data content and format by 2009. The statute further requires the Commissioner of Health, in consultation with the Minnesota Administrative Uniformity Committee (AUC), to develop rules for the standard exchange of electronic health care administrative transactions. This work is underway now.
Minnesota Statutes, sections 62J.51 – 62J.61, was amended during the 2008 session of the Minnesota Legislature with technical and clarifying changes to the ASA as well as changes specific to Minnesota Statutes, section 62J.536 and its requirements for the standard, electronic exchange of health care administrative transactions, including: a) a new, limited exception to some rules for payers not covered by HIPAA; and b) new compliance/enforcement provisions.