How the HITECH Act changes HIPAA compliance

Thanks to the HITECH Act, HIPAA compliance has become stricter, with bigger fines for data breaches and restrictions on the use of personal data. This tip outlines the major changes to HIPAA compliance.

In addition to introducing the concept of meaningful use, the Health Information Technology for Economic and Clinical

Health (HITECH) Act made significant changes to the Health Information Portability and Accountability Act (HIPAA) of 1996.

The biggest change to HIPAA compliance is the significant toughening of data breach notification laws, which now not only impose larger fines and require more extensive public notifications when data is lost, but also apply to a health care provider's business associates. Additional updates to HIPAA compliance affect the way providers are authorized to use personal health information for marketing and communication purposes.

The chart below summarizes the major changes made to the HIPAA Privacy and HIPAA Security rules by the HITECH Act. The Department of Health & Human Services outlined these changes in its proposed rule on HIPAA compliance modifications under the HITECH Act, although it should be noted that some of the modifications within that rule are independent of the HITECH Act.

Much of this information comes courtesy of the American Association of Oral and Maxillofacial Surgeons, whose research on HIPAA compliance was passed along by Christopher Paidhrin, security compliance officer for the Southwest Washington Medical Center in Vancouver.

Issue
HIPAA
HITECH Act
Definition of CE Health plan, clearinghouse or provider involved in the disclosure of PHI Expanded to include HIE, RHIO, e-prescribing gateway and subcontractor
Is a BA a CE? No Yes -- subject to HIPAA Privacy and HIPAA Security rules
Data breach notification No direct obligation, though state laws vary Notification required if more than 500 patients affected
Data breach enforcement Collaborative investigation involving HHS and CE HHS investigation to determine willful neglect1; expanded to include individual employees at CE and BA
Data breach penalties Minimum of $100, maximum of $25,000 $100 to $50,000 per violation, with yearly maximum of $25,000 to $1.5 million and mandatory penalties for willful neglect
Sale of PHI Allowed Prohibited by CEs and BAs without valid authorization, save for certain conditions2
Use of PHI in marketing communications Authorization required, with three exceptions -- CE services, treatment, case management/alternative treatment Expanded to ban direct or indirect payment for communications; now applies to BAs
Dissemination of PHI to patients Only if readily available Must be provided, preferably in electronic format; fee cannot exceed labor cost
Fundraising opt-out If patients opt out, CE must make "reasonable efforts" to stop If patients opt out, CE must stop
Definition of electronic media Limited to storage media, such as tape and disk Expanded to reference Internet and VoIP technology

Key to acronyms

BA = business associate
CE = covered entity
HHS = Department of Health & Human Services
HIE = health information exchange
PHI = personal health information
RHIO = regional health information organization

1The "conscious, intentional failure or reckless indifference to the obligation to comply with the administrative simplification provision violated"

2Public health activities; research; treatment; services rendered by a BA; or "the sale, transfer, merger, or consolidation of all or part of a CE"

Let us know what you think about this story; email editor@searchhealthit.com.

This was first published in August 2010

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