HIPAA

Health Insurance Portability & Accountability Act of 1996

Provider Select, Inc. has stayed abreast of the regulations issued by the Department of Health and Human Services regarding the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Final rules have been issued and implemented for standardized electronic transactions, privacy, national employer identifier, and security. Provider Select is actively preparing for the national provider identifier compliance date in May 2007. We are committed to supporting our clients with compliance with these regulations.

We have established policies and procedures and implemented aspects of the regulations that impact our services, including system enhancements.

Ongoing Initiatives

HIPAA Compliance Committee: This group is responsible for the assessment and implementation of the final regulations as published in the Federal Register. This cross-functional team is comprised of representatives for each area of the organization, including Account Management, Information Technology, Human Resources, National Contracting and Healthcare Management.

Assessment and GAP Analysis: With issuance of each component of the HIPAA regulations, Provider Select completes a GAP analysis to assess our core business applications, local and wide area networks, business processes, and documentation to identify areas that may require modification in order to comply with the new rules.

Implementation: Provider Select is implementing the ASC X12N 837 v4010 for both professional and institutional claims transmissions, and ASC X12N 276/277 Claim Status Request and Response. Privacy and security of Protected Health Information (PHI) and electronic Protected Health Information (ePHI) has been implemented through revision of policies and procedures, system and software enhancements and all-employee annual training.

Continued Monitoring: Our cross-functional implementation team will continue to monitor HIPAA standards and guidelines, including future modifications to the final rules, to ensure our continued awareness and assess our continued compliance with the provisions of HIPAA. Our HIPAA compliance initiatives are an integral part of how we do business. We are confident that our focus and commitment will minimize any impact on client relations and that we will continue to provide the exceptional service our clients have come to expect from us.

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