DHHS to Propose Modification to Transaction
In response to a February recommendation
from the National Committee on Vital and Health Statistics (NCVHS),
the Department of Health and Human Services plans to propose a modification
to the Transaction Standard. The modification would retract the
adoption of National Drug Codes (NDCs) as the standard medical data
code set for reporting drugs and biologics for certain standard
transactions.
Transaction Standard, Section
162.1002
Letter from DHHS to NCVHS
THE SECRETARY OF HEALTH AND HUMAN SERVICES
WASHINGTON. D.C. 20201
MAY 29 2001
John Lumpkin, M.D., M.P.H.
Chair, National Committee on Vital and Health Statistics
6525 Belcrest Road
Room 1100
Hyattsville, MD 20782
Dear Dr. Lumpkin:
Thank you for your letter offering comments and recommendations
from the National Committee on Vital and Health Statistics (NCVHS)
regarding implementation of National Drug Codes (NDCs) to report
drugs and biologics on institutional and professional claims.
Your recommendation to modify the standard (section 162.1002(c)
in the Final Rule on Standards for Electronic Transactions) would
retract the adoption of NDCs as the standard medical data code set
for reporting drugs and biologics for certain standard transactions.
This responds to industry problems with transitioning from the use
of Health Care Financing Administration (HCFA) Common Procedure
Coding System codes to NDCs for reporting drugs and biologics. These
problems were initially presented by representatives from the health
care industry at the NCVHS public hearings on February 1, 2001.
We reviewed the testimony from the hearings and agree that the
providers, health plans, and health care clearinghouses in attendance
raised a number of compelling concerns regarding implementation
of the NDC. We intend to pursue your recommendation by publishing
a notice of proposed rulemaking. We expect to do this in the near
future, so we can resolve the issues before substantial work by
the industry to convert to NDCs is underway. HCFA also recognizes
the need to develop specific criteria for evaluating drug coding
systems in conjunction with further evaluation of existing code
sets, and we would appreciate input from the NCVHS for coordinating
efforts with other agencies and representatives from the health
care industry.
We appreciate the information about industry concerns with implementing
the Health Insurance Portability and Accountability Act medical
code set standards and look forward to working with you on these
issues.
Please feel free to call me if you have questions or concerns.
Sincerely,
/s/
Tommy G. Thompson
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