Frequently Asked Questions About the National Standard Employer Identifier (EIN). Why is a standard employer identifier needed for electronic health transactions?


Employers, as sponsors of health insurance for their employees, often need to be identified in health care transactions, and a standard identifier for employers would be beneficial for transactions exchanged electronically. Health care providers may need to identify the employer of the participant on claims submitted to health plans electronically. Employers need to identify themselves in electronic transactions when they enroll or disenroll employees in a health plan or make premium payments to health plans on behalf of their employees. Employers and health care providers may need to identify an employer as the source or receiver of information about a participant’s eligibility.