ACA Title 1, Sec. 1104 Administrative simplification. “Bad” – Extends HIPAA standardization too far: This section extends the standardization of all claims, patient care, electronic claims payment procedures and health plan reporting provisions originally contained in HIPAA. This looks like more extensive standardization of “operating rules” with sizable financial penalties for non-compliance. This feels like the “dead hand of government” requiring everyone to do everything regarding reporting and payment the same way. What happens to innovation and improvements when government dictates standardization? I think this is a provision which will lead to a higher degree of standardization and the loss of responsiveness and creativity among providers and health plans. Also the National Committee on Vital and Health Statistics is the advisory group expected to provide leadership. How close is the group to current delivery system realities? I believe this section needs to be scaled back and its purposes prioritized based on consensus practices.

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