For the health care industry to comply with HIPAA and achieve potential administrative cost savings with Electronic Data Interchange (EDI), the Accredited Standards Committee (ASC) X12 developed standards to be implemented consistently by all organizations.
To facilitate uniform implementation, HIPAA’s goal is to simplify and encourage the electronic transfer of information by replacing many of the current nationally-used nonstandard formats with a single set of electronic transactions to be used throughout the health care industry.
