Hipaa Introduction

admin — Mon, 27 Jul 2009 13:52:15 +0000

In 1996, the health insurance portability and accountability act (HIPAA) was incorporated by the department of Health and Human Services. These rules and regulations have been designed so that they can safeguard the privacy of people with regard to their medical records. According to this act, personal information regarding the medical background of the patient cannot be revealed without any valid reason and this has brought about a sea change in the method of handling of health care information.

The rules and regulations of HIPAA are applicable to a very broad spectrum of people. All kinds of health care plans as well as health care providers, health care clearing houses and billing companies are bound by the rules as well as regulations of this act. All the organizations, which come under the stipulation of this Act, are known as covered entities. Anyone who is even remotely associated with the field of health care will be bound by the rules and regulations of this act. This is also likely to affect people who make use of health care services.

Companies, which offer medical transcription services and the employees of such companies, are not included under the “covered entities” of HIPAA. According to this Act, medical transcription services come under the classification of business associates. According to this act, a business associate is “any person or organization that performs a function or activity on behalf of a Covered Entity, but is not part of the Covered Entity’s workforce (employees, volunteers, trainees and others under the Covered Entity’s direct control, regardless of whether they are paid by the Covered Entity.” But the rules and regulations, which are being implemented in every state, are different and they will also differ from the regulations, which have been imposed at the national level. Certain states might define medical transcription companies as covered entities.

Business associates do not come under the direct governance of HIPAA. But all those organizations, which are covered entities under HIPAA, should sign a written agreement with all business associates in order to ensure that the medical information of patients is kept safe and secure. These clauses should be a part of the contract, which is signed between the covered entity and the business associate. Business associates will find that covered entities to which their services are offered will be very strict in the compliance of all these rules and regulations with relevance to HIPPA. All the covered entities should devise their own methods to ensure that their business associates do not flout any of the terms and conditions of the contract with regard to the disclosure of the medical information of the patients.

HIPAA was incorporated in the year 2001 but a small time period was given for people to implement the rules and regulations, which come under this Act. According to HIPAA, there should also be standards for the electronic transmittal of documents. The standards, which have been prescribed by HIPAA, are ANSIX12. These standards are regarding the content as well as the format of the medical information, which is being transferred in an electronic manner.

The main purpose of this Act is to curtail the free distribution of medical information of the patient. These rules have been designed keeping in mind the transmittal of information in any manner be it orally, through paper or in an electronic format. This also curtails revealing any personal identification regarding the patient like name, address, telephone number, social security number etc. Covered entities, which do not follow the rules and regulations, which have been outlined under HIPAA, will definitely have to pay some kind of penalty, which could also include a fine. Criminal charges can also be pressed depending on the circumstances.

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Hipaa Introduction

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