Healthcare Industry Compliance Needs
The HealthInsurance Portability and Accountability Act of 1996 (HIPAA, Title II) was established by the Department of Health and Human Services (HHS). The HHS enacted HIPAA for two primary purposes: 1) to establish national standards for electronic healthcare transactions and national identifiers for providers; and 2) to protect and secure private health data.
HIPAA applies to any entity that needs access to protected health information. HHS has specifically defined covered entities as healthcare providers, health plans, and healthcare clearinghouses. Individuals ororganizations that conduct business with covered entities but do not fall under the security rules of HIPAA are required to sign a "HIPAA BusinessAssociate Agreement." Some examples include vendors, suppliers, lawyers, etc. The associate agreement insures that a non-covered entity exercises the proper due diligence when dealing with protected health information.
On February 17, 2009, President Obama signed the Health Information Technology for Economic and Clinical Health (HITECH) Act, as part of the stimulus package (a.k.a.American Recovery and Reinvestment Act (ARRA)). The ARRA dedicates substantial resources to health information technology that supports the secure electronic exchange and use of health information, including monetary incentives for physicians who implement health information technology according to the regulations by President Obama's 2014 deadline.
The HITECH Act significantly extends certain HIPAA security and privacy requirements, as well as sets the stage for increased enforcement. The act establishes mandatory federal security breach reporting requirements for covered entities and their business associates who handle unsecured electronic personal health information (EPHI). The ultimate goal of the HITECH Act is to encourage the adoption of electronic health records (EHRs) through incentive payments of up to $44,000 from Medicare and $65,000 from Medicaid for eligible professionals who demonstrate meaningful use of a certified EHR.
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