All covered entities under the Health Insurance Portability and Accountability Act (HIPAA) must be ready to implement the Version 5010 transaction standards on January 1, 2012. A critical step to reaching this milestone is testing Version 5010 transactions prior to going live. Providers are encouraged to conduct (external) Level II testing. CMS has posted a new fact sheet. External testing with business partners in the new Version 5010 format will ensure compliant transactions occur prior to the deadline.  

CMS Suggestions:

• Identify the partners with whom you currently conduct transactions
• Create a schedule and timeline for external testing with each partner
• Identify priority partners to conduct testing with if you trade with a large number of business partners