Health care reform
Because administrative costs are one factor that contributes to the high cost of health care, administrative simplification was included in the Health Insurance Portability and Accountability Act of 1996 (HIPAA) by the U.S. Department of Health and Human Services (HHS). The goal of administrative simplification is to improve the efficiency and effectiveness of the health care system through electronic transactions. Controlling health plans (CHPs) must comply with the adopted standards and operating rules set forth by administrative simplification. Compliance can be achieved by demonstrating conformity with each of the CAQH Committee on Operating Rules (CORE) requirements (among other conditions).