Final answer:
Medicare does require electronic submission of claims in compliance with HIPAA; although the Medicare Modernization Act of 2003 initiated this, the HITECH Act of 2009 greatly encouraged it.
Step-by-step explanation:
It is true that Medicare requires claims to be submitted electronically in compliance with HIPAA. This requirement was initially outlined in the Medicare Modernization Act of 2003. However, the widespread use of electronic claims submission in accordance with HIPAA rules became more prevalent after the passage of the Health Information Technology for Economic and Clinical Health (HITECH) Act in 2009, which further promoted the adoption of electronic health records and electronic data interchange in the healthcare industry.