New security guidelines will foster EDI use.

Both HCFA and HHS have issued new policies that provide direction to providers and payers regarding maintaining confidentiality of the medical data they transmit. A HCFA draft policy allows Medicare contractors and others to use the internet to transmit Medicare information, marking a reversal of HCFA's previous stand on the issue. At the same time, HHS has issued a proposed rule governing security and electronic signature standards, which directs all organizations that deal with patient information to develop a policy that ensures security of patient data.