Minnesota enacts e-health law.

• Author: Swartz, Nikki
• Position: UP FRONT

Minnesota recently became the first U.S. state to require all healthcare payers and providers to submit claims and eligibility transactions electronically using a common format starting in 2009.

The new requirements, signed into law by Gov. Tim Pawlenty as part of the 2007 Omnibus Health and Human Services funding bill, apply to all healthcare providers and affect virtually anyone who bills for or buys healthcare services on behalf of a group of people, including insurers, doctors, and pharmacists.

Policymakers say electronic administrative healthcare transactions can reduce costs and improve the efficiency of health care. A new state law requires all hospitals and healthcare providers to have an interoperable electronic health records system in place by 2015.

The legislation received strong bipartisan support and represents continued efforts by providers and state officials to make Minnesota a leader in reducing administrative costs.

In Minnesota, the new law is intended to accelerate the adoption of electronic health transactions and allow more of every healthcare dollar to be spent on direct patient care. A 2006 state report on administrative simplification...