Last December, President Bush approved a one-year extension on the deadline for compliance with HIPAA's electronic transaction and code set standards. As a result of the extension, health care organizations covered by HIPAA have until Oct. 16, 2003, to comply with the standards as long as they submit a compliance plan to the Secretary of Health and Human Services by Oct. 15, 2002.

The plan is required for organizations that will not be compliant this year, and it must demonstrate how they will achieve compliance by October 2003. If a covered entity is not compliant by Oct. 16, 2002, and does not file for an extension, it may be excluded from participation in Medicare.

For more information about HIPAA compliance, and to obtain a model compliance plan, visit http://www.cms.hhs.gov/hipaa/hipaa2/ASCAForm.asp.