Section 1104 of the Administrative Simplification provisions of the Patient Protection and Affordable Care Act (a/k/a Affordable Care Act, ACA) established new requirements for administrative transactions that will enhance the usefulness of existing HIPAA transactions and reduce administrative costs.

In Section 1104(b)(2) of the Affordable Care Act, Congress required the adoption of new operating rules for the health care industry. To create as much uniformity as possible in the implementation of electronic standards, Congress directed the U.S. Secretary of Health and Human Services to adopt a single set of operating rules for each transaction.

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