The Health Insurance Portability and Accountablity Act (HIPAA) of 1996 provides both privacy protections and portability protections for covered entities.

Essentially, the Act:

• Limits the ability of a new employer plan to exclude coverage for preexisting conditions;


• Provides additional opportunities to enroll in a group health plan if you lose other coverage or experience certain life events;


• Prohibits discrimination against employees and their dependent family members based on any health factors they may have, including prior medical conditions, previous claims experience, and genetic information; and


• Guarantees that certain individuals will have access to, and can renew, individual health insurance policies.

Failure to take appropriate action to protect the medical information of covered entities can result in significant penalties.In one such instance, CVS Caremark Corp. agreed to pay $2.25 million to settle a federal investigation into allegations that it violated HIPAA privacy regulations when pharmacy employees threw items such as pill bottles with patient information into the trash.

HR Compliance Officers should take great care to ensure that employee medical records are kept confidential, under lock and key with access restricted to designated personnel. Auditing your current process affords you the opportunity to evaluate and make any changes necessary to remain or become compliant with the HIPAA rules and regulations.

HIPAA Update

The Centers for Medicaid and Medicare Services have put physicians on notice regarding the upgrade of their electronic billing systems. Effective January 1, 2012 providers who have not upgraded to the 5010 standard will not be paid for their transactions. Click HERE for additional information regarding this change.

Applicable Regulations:

Health Insurance Portability Act (HIPAA) of 1996

Give us a call at: 561-886-7535 or send us an email to request a no-obligation proposal regarding our HIPAA services.