HIPAA - Trading Parter vs. Business Associate

[DTH]

Under HIPAA, what is the difference between a business associate and a trading partner?

[Steve72]

A business associate is a person or entity who performs services for the benefit of a covered entity involving the transfer of PHI. The PRIVACY regulations require that the covered entity enter into a contract with this entity.

A trading partner, on the other hand, is an entity with whom a covered entity engages in one of the HIPAA transactions in an electronic format. The TRANSACTIONS STANDARDS regulations govern this relationship.

It is possible for one relationship to be both a business associate and trading partner relationship.

[DTH]

I guess I am confused because of one of the HHS Q&As. It says...

Q14: How will one covered entity know whether another covered entity with which it does business has submitted a plan?

A14: Each covered entity should communicate directly with its own trading partners to determine which ones have submitted plans. This information could be included in establishing schedules for the testing activities that are to begin by April 16, 2003, culminating in a migration to the new standards that meets the needs of all trading partners.

Q15: I believe I will be fully compliant by October, 2002. However, I know that some of my trading partners are requesting extensions and will continue to use nonstandard formats after that date. Do I need to submit a compliance extension plan so that I can continue to communicate with these partners using nonstandard transactions?

A15: No. A covered entity is not required to conduct compliant transactions with covered entities who are not yet required to be in compliance and therefore would not need to submit a compliance extension plan.

The reqs. don't define a trading partner, just the trading partner agreement. It appears, in the Q&As, that trading partners are another covered enity. Covered entities are required to file their own extenstions. Whereas a business associate would not file for an extension, they would fall under the health plan's )or other covered entities) extension complaince plan???

:confused: :confused:

[Steve72]

"Whereas a business associate would not file for an extension, they would fall under the health plan's )or other covered entities) extension complaince plan???"

Sort of. A business associate is never (unless itself a covered entity; e.g., a clearinghouse) required to file for an extension or comply with the transaction standards. Rather, the covered entity must file a plan or utilize compliant third parties to conduct the transactions.