What is EDI?
EDI (Electronic Data Interchange) is defined as a computer-to-computer exchange of data in a standardized format. In order to achieve the goal of EDI, communicating information effectively and efficiently in a standardized format, the computer systems involved must “speak” the same language. EDI has been used widely in commerce and government since the 1960’s. However, it was not until the 1990’s that the International Association of Industrial Accident Boards and Commissions (IAIABC) began to look at EDI as a way to transmit workers’ compensation insurance information to state jurisdictions.
The IAIABC is a private association of workers’ compensation professionals from both the public and private sector working together to improve the administration and application of Workers’ Compensation Laws across the nation. The IAIABC has developed EDI standards for reporting First and Subsequent Reports of Injury, medical and proof of coverage information. Over two thirds of the states have adopted some form of EDI in their workers’ compensation systems. The IAIABC is committed to the EDI process and is constantly evaluating and enhancing the standards for reporting workers’ compensation insurance data.