A large percentage of every healthcare dollar is spent on administrative overhead. A large part of administrative overhead includes the process for enrolling individuals in a health plan. To address these problems, the healthcare industry has attempted to develop standards for accomplishing these transactions electronically. The focal point of this paper is the HIPAA law, which requires the Secretary of Health and Human Services to adopt national uniform standards for certain transactions. The law requires that the standards be followed any time these transactions are conducted electronically.
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