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Health Insurance Portability & Accountability
Act
Essential HIPAA Terminology
Understanding the HIPAA regulations will be easier if you
understand the following items:
Protected health information (PHI). HIPAA regulations
apply to protected health information, that is, medical information
that contains any of a number of patient identifiers including name, Social
Security number, telephone number, medical record number, or ZIP code.
The regulations protect all individually identifiable health information
in any form (electronic, paper-based, oral) that is stored or transmitted
by a covered entity.
Covered entities: Any health-care providers, health plans, or clearinghouses
that electronically transmit medical information such as billing, claims,
enrollment, or eligibility verification must meet HIPAA regulations. Covered
entities also include medical practices (including solo practices), employers,
rehabilitation centers, nursing homes, public health authorities, life
insurance agencies, billing agencies and some vendors, service organizations,
and universities.
Business associates. Covered entities cannot circumvent HIPAA regulations
by using a business associate such as a billing service or
other agency, to handle their electronic transactions. HIPAA requires
covered entities to verify that their business associates and partners
have security measures in place and technology sufficient to avoid accidental
disclosure or mishandling of individually identifiable health information.
Business associates must also abide by HIPAA regulations, for example,
by ensuring that the individuals who are the subject of the information
have access to it.
Privacy. HIPAA regulations protect an individuals right to
the privacy of his/her medical information to keep it from falling into
the hands of people who would use it for commercial advantage, personal
gain, or malicious harm. HIPAA privacy regulations require providers to
obtain a signed consent form to use and disclose PHI for activities related
to treatment, payment, and health-care operations, and to obtain a separate
authorization to use or disclose PHI for any other purposes (e.g., marketing).
Security. Security refers to a covered entitys specific efforts
to protect the integrity of the health information it holds, and prevent
unauthorized breaches of privacy such as might occur if data are lost
or destroyed by accident, stolen by intent, or sent to the wrong person
in error. Security measures can be physical (e.g., locking rooms and storage
facilities), administrative (e.g., policies and procedures covering access
to information, user IDs and passwords, or punishments for violations
of these), or technological (e.g., encryption of electronic data and use
of digital signatures to authenticate users logging into a computer system).
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All rights reserved. Revised February 14, 2001
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