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SEC. 1175. Requirements

                                                                                                                                                                                                                                                                                                                        

 Title[ Title II\Subtitle F\Sec. 262                                               Contents

                                                                                                                                                                                                                                                                                                                       


Sec. 1175. (a) Conduct <<NOTE: 42 USC 1320d-4.>>  of Transactions

by Plans.--

            ``(1) In general.--If a person desires to conduct a

        transaction referred to in section 1173(a)(1) with a health plan

        as a standard transaction--


                    ``(A) the health plan may not refuse to conduct such

                transaction as a standard transaction;


                    ``(B) the insurance plan may not delay such

                transaction, or otherwise adversely affect, or attempt

                to adversely affect, the person or the transaction on

                the ground that the transaction is a standard

                transaction; and


                    ``(C) the information transmitted and received in

                connection with the transaction shall be in the form of

                standard data elements of health information.


            ``(2) Satisfaction of requirements.--A health plan may

        satisfy the requirements under paragraph (1) by--

                    ``(A) directly transmitting and receiving standard

                data elements of health information; or


                    ``(B) submitting nonstandard data elements to a

                health care clearinghouse for processing into standard

                data elements and transmission by the health care

                clearinghouse, and receiving standard data elements

                through the health care clearinghouse.


            ``(3) Timetable for compliance.--Paragraph (1) shall not be

        construed to require a health plan to comply with any standard,

        implementation specification, or modification to a standard or

        specification adopted or established by the Secretary under

        sections 1172 through 1174 at any time prior to the date on

        which the plan is required to comply with the standard or

        specification under subsection (b).


    ``(b) Compliance With Standards.--

            ``(1) Initial compliance.--

                    ``(A) In general.--Not later than 24 months after

                the date on which an initial standard or implementation

                specification is adopted or established under sections

                1172 and 1173, each person to whom the standard or

                implementation specification applies shall comply with

                the standard or specification.


                    ``(B) Special rule for small health plans.--In the

                case of a small health plan, paragraph (1) shall be

                applied by substituting `36 months' for `24 months'. For

                purposes of this subsection, the Secretary shall

                determine the plans that qualify as small health plans.


            ``(2) Compliance with modified standards.--If the Secretary

        adopts a modification to a standard or implementation

        specification under this part, each person to whom the standard

        or implementation specification applies shall comply with the

        modified standard or implementation specification at such time

        as the Secretary determines appropriate, taking into account the

        time needed to comply due to the nature and extent of the

        modification. The time determined appropriate under the

        preceding sentence may not be earlier than the last day of the

        180-day period beginning on the date such modification is

        adopted. The Secretary may extend the time for compliance for

        small health plans, if the Secretary determines that such

        extension is appropriate.


            ``(3) Construction.--Nothing in this subsection shall be

        construed to prohibit any person from complying with a standard

        or specification by--

                    ``(A) submitting nonstandard data elements to a

                health care clearinghouse for processing into standard

                data elements and transmission by the health care

                clearing-

                house; or

                    ``(B) receiving standard data elements through a

                health care clearinghouse.


                                                                                                                                                                                                                                                                                                                                                                        

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