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  • Answers - 5 Facts About NPI For HIPAA Compliant Electronic Medical Billing Software And Service

    The 1996 Health Insurance Portability and Accountability Act (HIPAA) established national privacy and security standards for e
    According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
    lectronic health care transactions, including a national identifier for providers, health plans and employers. Accordingly, by
    ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

    Examples of combination products may in
    May 23, 2007, healthcare providers and all health plans and clearinghouses must change both their processes and information sy
    lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

    tems to implement HIPAA’s National Provider Identifier (NPI) regulations.

    Background on the NPI regulation
      <
    here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
    i> HIPAA mandated regulation
  • Effective nationwide on May 23, 2007
  • The compliance date for hea
  • d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

    Combination pro
    th care payers with less than $5 million in annual revenue is May 23, 2008

    What is the NPI?
    ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
  • A unique 10-digit identification number
  • Assigned for life to a provider and de-activated only upon death,
  • easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
    etirement, or identity theft
  • Replaces multiple legacy provider identification numbers, including Medicare UPINs,
  • nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
    commercial payer IDs and state Medicaid IDs
  • Contains no identifying information related to the provider - random
  • and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
    y generated
  • Independent of key provider information changes, such as practice location or specialty
  • <
    ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
    i> Providers have 30 days to update their NPI record

    Who is affected by the NPI mandate?
      ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

      Following aspects would a
      i> Payers
      • Health plans
    • Clearinghouses
    • Providers
      • Organ
    • dd to the challenges in developing combination products:

      Which markets to tap where the combination products can do fairly well?
      Which combination prod
      zational providers
    • Individual providers


    Why is the NPI necessary? <
    cts are meaningful and rational?
    Which therapeutic categories to select?
    Which Combinations can address unmet needs of the patients?
    Do combin
    l>
  • NPI delivers two-fold benefits for payers and providers:
    • Simplifies communication and administration
      tions increase the patient compliance?
      What would be the developing cost?
      How to tackle the risks encountered during combination product developmen
    • Facilitates efficient electronic transmission of certain health information
  • Streamlines
  • t?

    As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
    detection of billing fraud and abuse
  • Improves debt collection efforts


  • What are the challen
    ping new procedures for reviewing their safety, efficacy and quality.

    Professional from academic institutions, pharmaceutical industries, health care indust
    ges of NPI implementation for payers and providers?
    • Providers and payers must exchange information
    y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
  • Technological implementation cost within organizations


  • What should payers and providers do now to pr
    .

    As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
    pare for the NPI?
    • Organize project teams to ensure a smooth transition
    • Identify and address pr
    elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

    Companies that provide selfless information through particip
    cesses and information system changes
  • Evaluate outsourcing solutions offered by technology vendors


  • tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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