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OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 566
Date: 01/25/2002

  1. LAW NUMBER: P.L.107-105 (H.R. 3323)

  2. BILL TITLE: Administrative Simplification Compliance Act

  3. BILL PURPOSE: Delays for one year, until October 16, 2003, the deadline for certain health care providers, plans, and clearinghouses, to comply with a regulation establishing national standards for exchanging health care data electronically.

    4.  

  4. OMB ESTIMATE: The Health Insurance Portability and Accountability Act (HIPAA) set national, uniform standards for the electronic exchange of patient data, such as health care claims, and national codes for describing medical procedures on claims forms. P.L. 107-105 delays the requirement for one year. As a result of the delay, certain medicaid reimbursements to States for HIPAA-related expenditures will be delayed from 2002 to 2003.

    5. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlays. . . . . . . . . . . . . . . . . . . . . 0 -25 25 0 0 0

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlays. . . . . . . . . . . . . . . . . . . . . 0 -50 50 0 0 0

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES: OMB assumes lower HIPAA-related expenditures for medicaid in 2002 than CBO. Therefore, the impact of the one-year delay is smaller under OMB scoring.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlay effect.............. 5,503 18,379 24,056 23,738 23,072 8,489
    Receipt effect............ -69,768 -34,950 -84,843 -104,138 -105,314 -123,755
    Net costs.................... 75,271 53,329 108,899 127,876 128,386 132,244