312-50V10 · Question #129
Which of the following act requires employer's standard national numbers to identify them on standard transactions?
The correct answer is B. HIPAA. HIPAA requires covered entities and employers to use standard national numbers, specifically the Employer Identification Number (EIN), to identify employers on standard electronic transactions.
Question
Which of the following act requires employer's standard national numbers to identify them on standard transactions?
Options
- ASOX
- BHIPAA
- CDMCA
- DPCI-DSS
How the community answered
(40 responses)- A3% (1)
- B90% (36)
- C3% (1)
- D5% (2)
Why each option
HIPAA requires covered entities and employers to use standard national numbers, specifically the Employer Identification Number (EIN), to identify employers on standard electronic transactions.
SOX (Sarbanes-Oxley Act) governs financial reporting, internal controls, and corporate accountability for publicly traded companies, not employer identification on transactions.
The Health Insurance Portability and Accountability Act (HIPAA) Administrative Simplification provisions mandate the use of standard national identifiers for employers on electronic healthcare transactions. The EIN issued by the IRS serves as the standard national employer identifier under HIPAA rules. This requirement ensures consistent identification across the healthcare industry's standard electronic transactions.
The DMCA (Digital Millennium Copyright Act) addresses digital copyright protection and anti-circumvention of digital rights management systems, unrelated to employer identification.
PCI-DSS (Payment Card Industry Data Security Standard) governs the security of cardholder payment data and does not address employer national identification numbers.
Concept tested: HIPAA employer national identifier requirement
Source: https://www.hhs.gov/hipaa/for-professionals/transactions-and-code-sets/index.html
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