Electronic Data Interchange (EDI) permits computer-to-computer exchange of formatted business transactions between business partners
and makes it possible for organizations to generate, receive, and process large volumes of information swiftly with limited human
intervention. It is a beneficial strategy to improve customer service, improve operational effectiveness, and save taxpayer dollars.
As a computer processes the transactions in EDI, there is less chance of human error, and speed is dramatically increased as opposed
to the time it takes to mail paper documents.
EDI involves reformatting a standard computer data file, as produced by an organization’s business application systems, into a
structured EDI format. This format must comply with the specific industry and Georgia standards. A specialized software program,
called an EDI translator, performs the transformation process from the system data file into the EDI format. Once the file has been
put into a structured format, it is brought into the Georgia Medicaid Management Information System (GAMMIS) for processing.
Health Insurance Portability and Accountability Act (HIPAA) 1996 Guidelines
The Health Insurance Portability and Accountability Act (HIPAA) was enacted by Congress in 1996 and became effective July 1, 1997.
The administrative simplification provisions of HIPAA required the Department of Health and Human Services (HHS) to establish
national standards for electronic healthcare transactions and national identifiers for providers, health plans, and employers. It
also addresses the security and privacy of health data. As the industry adopts these standards for the efficiency and
effectiveness of the nation's healthcare system, it will improve the use of electronic data interchange.
The EDI Unit provides support for trading partners and providers that exchange transactions electronically. Support functions include: