WSR 03-14-102

PROPOSED RULES

DEPARTMENT OF

SOCIAL AND HEALTH SERVICES
(Medical Assistance Administration)

[ Filed June 30, 2003, 3:44 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-08-086.

Title of Rule: Amending WAC 388-550-1050 Hospital services definitions, 388-550-6100 Outpatient hospital physical therapy, 388-550-6150 Outpatient hospital occupational therapy, 388-550-6200 Outpatient hospital speech therapy services, and 388-550-6400 Outpatient hospital diabetes education.

Purpose: To avoid federal penalties, the department is amending these rules to be HIPAA-compliant by October 16, 2003.

Statutory Authority for Adoption: RCW 74.04.050, 74.04.057, and 74.08.090.

Statute Being Implemented: RCW 74.04.050, 74.04.057, and 74.08.090.

Summary: The department is amending the rules to comply with the requirements of the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), Public Law 104-191. Also, the rules are being revised to ensure the department's administrative code reflects current policy and practice.

Reasons Supporting Proposal: Complies with the HIPAA requirements and avoids federal penalties by amending rules to be HIPAA-compliant by October 16, 2003. Updates rule content to reflect current department policy.

Name of Agency Personnel Responsible for Drafting: Kathy Sayre, P.O. Box 45533, Olympia, WA 98504, (360) 725-1342; Implementation and Enforcement: John Hanson, P.O. Box 45510, Olympia, WA 98504, (360) 725-1856.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is necessary because of federal law, Public Law 104-191 (Health Insurance Portability and Accountability Act of 1996).

Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rules meet HIPAA-specific standards that all states must meet in regards to electronic health information transactions and the privacy of client health information. In addition, the proposed rules delete language and provide a cross-reference to appropriate WAC sections to ensure current policy is reflected in rule. Also, the proposed rules update current policy by stating the department pays for six hours of outpatient diabetes education per calendar year per client.

The purpose of the rules is to ensure department rules are HIPAA-compliant by October 16, 2003, and to adopt into permanent rule clarifying language to reflect current department policy and business practices.

The anticipated effects are: (1) To meet HIPAA-specific standards all states must meet in regards to electronic health information transactions and the privacy of client health information; (2) to ensure MAA rules are HIPAA-compliant by October 16, 2003, to avoid federal penalties; and (3) to incorporate into rule existing policy for the number of hours of outpatient diabetes education the department pays per calendar year per client.

Proposal Changes the Following Existing Rules: The department is amending language to comply with HIPAA requirements. In addition, the department has changed language that states the department pays for a maximum of "six hours of individual core survival skills diabetes education per lifetime per client" to "six hours of individual core survival skills diabetes education per calendar year per client."

No small business economic impact statement has been prepared under chapter 19.85 RCW. Small businesses are not affected by these rule changes.

RCW 34.05.328 applies to this rule adoption. The rules meet the definition of a "significant legislative rule." The department has prepared a cost benefit analysis (CBA) memo regarding these rule changes. A copy of the memo can be obtained from John Hanson, Division of Business and Finance, Medical Assistance Administration, Department of Social and Health Services, P.O. Box 45510, Olympia, WA 98504-5510, phone (360) 753-4338, e-mail hansojr@dshs.wa.gov.

Hearing Location: Blake Office Park (behind Goodyear Courtesy Tire), 4500 10th Avenue S.E., Rose Room, Lacey, WA 98503, on August 26, 2003, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Andy Fernando, DSHS Rules Coordinator, by August 22, 2003, phone (360) 664-6094, TTY (360) 664-6178, e-mail fernaax@dshs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Department of Social and Health Services, Rules Coordinator, Rules and Policies Assistance Unit, mail to P.O. Box 45850, Olympia, WA 98504-5850, deliver to 4500 10th Avenue S.E., Lacey, WA, fax (360) 664-6185, e-mail fernaax@dshs.wa.gov, by 5:00 p.m., August 26, 2003.

Date of Intended Adoption: Not sooner than August 27, 2003.

June 27, 2003

Brian H. Lindgren, Manager

Rules and Policies Assistance Unit

Reviser's note: The material contained in this filing exceeded the page-count limitations of WAC 1-21-040 for appearance in this issue of the Register. It will appear in the 03-15 issue of the Register.

Legislature Code Reviser 

Register

Washington State Code Reviser's Office