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Providers and health plans are required to use the standards for the specified electronic transactions. Transactions referred to in this provision are transactions with respect to the following:

Health claims or equivalent encounter information.

Health claims attachment.

Enrollment and disenrollment in a health plan.

Eligibility for a health plan.

Health care payment and remittance advice.

Health plan premium payments.

First report of injury.

Health claim status.

Referral certification and authorization.

Providers and health plans may comply directly, or may use a health care clearinghouse. Either way, each person who maintains or transmits health information shall maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the integrity and confidentiality of the information and to protect against any reasonably anticipated threats or hazards to the security or integrity of the information and unauthorized uses or disclosures of the information.

SECURITY is not a luxury. It’s even more than a mandate. In the health and medical industry, it is an absolute necessity. Therefore, security is the main focus of these standards.