Electronic Data Interchange (EDI) is standardized in the USA and behind much of the economic success of this country. From ATM transactions over phone bills between carriers to Wal-Mart's supply chain, commerce relies on standardized electronic data interchange.
The HIPAA act mandates that "Benefit Enrollment and Maintenance" transactions need to be transmitted in a standardized way. The 834 standard is designated to contain Benefit Enrollment and personal maintenance data. Typically, such information is exchanged between a benefit sponsor such as a government program or private employer, and an insurance company or a trade union and its third party administrator (TPA). The 834 Transaction is the HIPAA-compliant Benefit Enrollment and Maintenance Transaction. Its purpose is to electronically transmit enrollment and dis-enrollment information.
The HIPAA Enrollment Master is a powerful tool to work with EDI 834 Enrollment transaction files.