WHAT YOU NEED TO KNOW ABOUT HIPAA

What is HIPAA?
HIPAA is the Health Insurance Portability and Accountability Act. It sets new federal standards for healthcare delivery and mandates protection of confidential medical records. All forms of medical records, including electronically transmit, written and orally, are covered by this Act.

Who is affected?
All healthcare organizations and their entities must comply. This includes, but is not limited to: Physician’s Offices, Dental Offices, Insurance Providers, and Health Plans.

Office Notice
HIPAA, Federal Register, Vol. 65. No. 250. Section 164.530 of the Privacy Rule requires covered entities to implement appropriate administrative, technical and physical safeguards to reasonably safeguard protected health information from intentional or unintentional use or disclosure that violates the Rule.

What are appropriate safeguards?
Examples of appropriate safeguards include… requiring that doors to medical records departments (or to mobile and fixed filing systems) remain locked and limiting which personnel are authorized to have the key or password.

When is the deadline for compliance?
Compliance with the Patent Privacy Rule is required by April 13th, 2003. Small health plans (less then $5 million in annual receipts) have until April 14th, 2004.

What are the penalties for non-compliance?
Civil penalties for violating these standards are $100 per violation, up to $25,000 per person, per year for each requirement or prohibition violated.

Congress has also established criminal penalties for knowingly violating patient privacy of up to $50,000 and one year in prison of obtaining or disclosing protected information; up to $100,000 and five years in prison for obtaining protected information under “false pretense”; and up to $250,000 and 10 years in prison for obtaining or disclosing protected information with the intent to sell, transfer or use it for commercial advantage, personal gain or malicious harm.

How can MONTEL help?
Any MONTEL product that can be locked would meet the appropriate safeguard requirements included in HIPAA.