Why should Health Plans, Vendors and Clearinghouses test? What are the different levels of testing?
Section D of the ASCA compliance extension form specifies a timeframe for testing not later than April 16, 2003. Can you provide a definition of testing, and does it relate to all transactions?
Why should I certify?
Can Software Vendors be certified too?
use a clearinghouse. How do I certify?
Are the test files I submit to Claredi secure?
Does each health care entity have to certify its transactions?
How much does certification cost?
My software vendor is telling me that its software is already certified. Why do I need to be certified by another organization?
Even if a third-party certificate exists, who certifies the certification agency?
My employer will soon merge with another organization in a similar line of business. How will this merger affect my Claredi certificate
Can Vendors submit HIPAA test claims to the state of Michigan?

Why should Health Plans, Vendors and Clearinghouses test? What are the different levels of testing?
The Strategic National Implementation Process (or SNIP, the group constituted under the Workgroup for Electronic Data Interchange to guide the health care industry in an orderly implementation of HIPAA-compliant EDI) has recommended transaction testing prior to "going live" with standard format transactions.

It only makes sense that a submitter would want and need the opportunity to identify and correct errors before entrusting their health care transactions entirely to the new formats. As help in making the most of the testing opportunity, SNIP has recommended testing in six categories, commonly referred to as levels:

Level 1: Integrity Testing (X12 Syntax)
Level 2: Requirement Testing (Implementation Guide Syntax)
Level 3: Balancing
Level 4: Situation Testing (Implementation Guide "Situational Elements")
Level 5: Code Set Testing
Level 6: Specialty or Line of Business Testing

Level 7: Trading Partner Specific Testing (added by Claredi for the convenience of trading partners with specific requirements which go beyond basic HIPAA requirements).


Section D of the ASCA compliance extension form specifies a timeframe for testing not later than April 16, 2003. Can you provide a definition of testing, and does it relate to all transactions?
ASCA requires that testing begin no later than April 2003. The law itself did not specify what type of testing, (e.g. internal, external, final with trading partners, all transactions, or just one, etc.) HHS interprets this to mean the date requested on the extension form as the date when internal system testing begins for the first transaction the covered entity will test. However, some covered entities will need to begin their external testing sooner than others, especially those that have many trading partners or are implementing many of the transactions. We encourage all covered entities to begin testing as soon as possible.


Why should I certify?
While there is clear regulatory requirement for compliance with specific EDI standards, there is no such stipulation about certification. However, the HIPAA rules do recommend that you complete a minimum level of certification. Third-party certification can determine an organization's capability for pertinent standard transactions and speed the realization of economic benefits from HIPAA implementation. In addition, being certified as HIPAA compliant, even if it is for only some of the transactions, demonstrates your "good faith" effort in complying with the law. This could become important in preventing fines later.


Can Software Vendors be certified too?
Yes, software vendors are encouraged to be certified. With that said, software vendors should create their own account on the Claredi web site (www.claredi.com).


use a clearinghouse. How do I certify?
If your clearinghouse is already Claredi-certified, your certification is very simple. Simply establish an account with Claredi, and have the clearinghouse submit your files to Claredi on your behalf. If your clearinghouse is not yet certified, please contact Claredi’s Marketing department.


Are the test files I submit to Claredi secure?
Yes, Claredi utilizes a secure server environment and does not collect and store data for purposes other than testing and certification. For added measure, we make available, free of charge, an X12 De-Identification Utility, which you can use to strip identification data from your files. Additionally, Claredi's testing can take place via a direct modem connection without going through the internet.


Does each health care entity have to certify its transactions?
No. Certification of EDI transactions covered by HIPAA is required by neither MDCH nor CMS at this time. All organizations that use these transactions are strongly urged to pursue certification. This includes entities not specifically covered by HIPAA, such as clearinghouses and software vendors. For an in-depth look at the benefits of certification, in addition to the benefits mentioned in section 1.2 of this document, please read Peter Barry’s white paper, “Economics of Third-Party Transaction Certification.” Mr. Barry’s paper, along with others can be found at www.claredi.com/whitepapers.php?PHPSESSID=4335dd816ba0f4ec03e3dd351fba13ab.


How much does certification cost?
Certification is provided at no cost to the entities listed in section 1.3 of this document. All entities have the option of purchasing their own account from Claredi. The cost of certification is usually no more than $6,000.


My software vendor is telling me that its software is already certified. Why do I need to be certified by another organization?
If your software vendor is telling you that its software is certified, ask to see the certificate. The certificate should list specific ANSI ASC X12N transaction sets for which the vendor was certified (e.g. ACS X12N 837i v4010 X098). In addition to each specific transaction set, the certificate should list the WEDI/SNIP types of testing passed by the vendor for each transaction. A certified transaction should indicate passing all six types of testing. In addition to the certificate requirements, you should also evaluate the validity of the certification agency. There are vendors who certify their own transactions. Understandably, the value and validity of such certifications should be questioned. A certificate from a third-party is most valuable.


Even if a third-party certificate exists, who certifies the certification agency?
There is no certification process for certification agencies. It is up to each health care entity to determine the value of a certificate. You will find that with over 18 years of EDI experience, Claredi, Inc. experts are among the most knowledgeable in the industry. Members of the Claredi leadership team own two clearinghouses, and have co-authored the HIPAA implementation guides. Whoever you choose as your certification agency, be sure that the following items are covered:

  • Certification is recognized by your trading partners
  • Certification is done by a neutral third party
  • Certification process is disclosed AND verifiable
  • Certification is recognized by the health care industry

My employer will soon merge with another organization in a similar line of business. How will this merger affect my Claredi certificate
Your employer will need to be re-certified. The re-certification will be required because of Claredi’s definition of a “Certifiable Entity”. A “Certifiable Entity” is defined by a combination of an EDI system and a Federal Tax ID. If your employer merges with another organization, either the Federal Tax ID, a portion of your EDI system, or both will change. If all that changed is the Federal Tax ID, you should resubmit the test transaction(s) and a new certificate will be issued. If the structure of your EDI system changes, you may have additional work ahead of you. Keep in mind that each certificate is lined to the Claredi directory and will show your entity’s specific capabilities. Therefore, if your entity’s transactions turn out as non-compliant due to EDI system changes, your certificate will be voided. To be safe, re-certification should be done any time changes to EDI are made.


Can Vendors submit HIPAA test claims to the state of Michigan?
If a vendor is registered as an electronic biller with MDCH they can submit test claims directly to the state of Michigan. If you are a software vendor (not a clearinghouse) it may be necessary for you to partner with a provider in order to submit test claims and receive accurate results.
If Providers are using web based applications — who will certify they are HIPAA compliant?
Certification of HIPAA compliant claims is performed by a third party testing vendor such as Claredi.


Contact Webmaster
Back To Top
Back to Home