A National Provider Identifier is a unique identification number for covered health care providers. It is a Health Insurance Portability and Accountability Act (HIPAA) Administrative Simplification Standard. This identifier is a 10-position, intelligence-free numeric identifier, meaning it does not carry information about the provider, such as the state in which they practice or their medical specialty. For example, a physician uses this identifier when submitting claims to insurance companies.
This unique identifier is crucial for standardizing health care transactions. It streamlines the process of submitting and processing claims, improving efficiency and reducing administrative burdens. Furthermore, it ensures that providers are correctly identified, preventing errors and fraud in the health care system. The implementation of this standard marked a significant step towards modernizing health care administration in the United States.