Statute that was signed into law on December 27, 2001, as Public Law 107-105. It provides a 1-year extension to Health Insurance Portability and Accountability Act (HIPAA)–covered entities to meet electronic and code set transaction requirements. It allows the Secretary of the Department of Health and Human Services (HHS) to exclude providers from Medicare if they are not compliant with the HIPAA electronic and code set transaction requirements and to prohibit Medicare payment of paper claims received after October 16, 2003, except under certain situations.