Title 42, The Public Health and WelfareRelease 119-102

§1320d–8 Processing Payment Transactions by Financial Institutions

Title 42 › CHAPTER 7 — SOCIAL SECURITY › SUBCHAPTER XI — GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE SIMPLIFICATION › Part C — Administrative Simplification › § 1320d–8

Last updated Aug 21, 2026|Official source

Summary

Exempts companies that act like banks or handle payments for banks from the rules in this part and any standards made under it when they are doing payment work. That covers using or sharing information to authorize, handle, clear, settle, bill, move, reconcile, or collect payments for health plan premiums or health care, no matter how the payment is made (credit or debit card, account, check, or electronic transfer). It also covers using or sharing information to transfer receivables, audit, handle customer disputes or questions, tell a customer about their transactions, report to consumer reporting agencies, or follow subpoenas or other laws that govern the company. Financial institution — a bank or similar entity (see 12 U.S.C. §3401).

Full Legal Text

Title 42, §1320d–8

The Public Health and Welfare, Source: USLM XML via OLRC

To the extent that an entity is engaged in activities of a financial institution (as defined in section 3401 of title 12), or is engaged in authorizing, processing, clearing, settling, billing, transferring, reconciling, or collecting payments, for a financial institution, this part, and any standard adopted under this part, shall not apply to the entity with respect to such activities, including the following:

(1)The use or disclosure of information by the entity for authorizing, processing, clearing, settling, billing, transferring, reconciling or collecting, a payment for, or related to, health plan premiums or health care, where such payment is made by any means, including a credit, debit, or other payment card, an account, check, or electronic funds transfer.

(2)The request for, or the use or disclosure of, information by the entity with respect to a payment described in paragraph (1)—

(A)for transferring receivables;

(B)for auditing;

(C)in connection with—

(i)a customer dispute; or

(ii)an inquiry from, or to, a customer;

(D)in a communication to a customer of the entity regarding the customer’s transactions, payment card, account, check, or electronic funds transfer;

(E)for reporting to consumer reporting agencies; or

(F)for complying with—

(i)a civil or criminal subpoena; or

(ii)a Federal or State law regulating the entity.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1320d–8

Title 42, The Public Health and Welfare

Last Updated

Aug 21, 2026

Release point: 119-102