How does HIPAA compliance influence CMS-1500 data handling?

• A. PHI protection is optional.
• B. CMS-1500 is a HIPAA standard transaction; PHI must be protected, and data must be transmitted via HIPAA-compliant channels.
• C. HIPAA only applies to electronic transmissions.
• D. HIPAA compliance is not required for CMS-1500.

Answer: (B)