The state owns the licenses for the translator, and in some cases, the translation tool can be leveraged for other business requirements within the organization. The cost of the translator does not vary based on the number of transactions, making costs more predictable and often lower than a clearinghouse. However, if the state s transaction volume increases substantially, additional hardware upgrades may be required. Many translators can translate both ASC X12N and HL7. The translator will expedite the translation of data in less time and for less cost than if the state attempted to develop new software itself.
Some states already have experience using translators.
ASC X12N version updates may be handled by a translator vendor. Additional maintenance or upgrade charges may apply. For this reason, it is important to ensure that the state chooses a translator that closely meets its needs. In addition to the initial hardware investment when installing the translator, the state could incur additional hardware costs if its transaction volume increases to the point that it experiences capacity constraints with its hardware. In the long term, the cost of translator is often lower than the cost of a clearinghouse for states with large transaction volumes because of the ongoing transaction fees associated with a clearinghouse solution.