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HIPAA Advisory

"Protecting your patient's privacy is a part of quality care!"

By now, ALL physicians must be HIPAA compliant when submitting electronic claims. Although all physicians are not required to file claims electronic, there are so many benefits of submitting claims electronically. Most insurance carriers will not accept "hand written" CMS1500 forms anymore, we have even seen some Workers Compensation carriers return or reject them. Being HIPAA compliant is not difficult, it just takes some common sense and using the correct forms to protect your patient's privacy. Remember, if you were a patient, you would want your private healthcare information completely protected.

We are NOT going to tell you that being HIPAA compliant is NOT going tot change the way your practice is run, that would be a big misconception. Protecting your patient's private health records is important, and your practice will need to take necessary steps to be sure to be compliant and stay compliant. Read On to find out how HIPAA will affect YOUR practice.

Do you have to be HIPAA compliant?
It's conditional, but definitely if you:

  • Employ more than 10 full-time employees, you are required to file Medicare electronically, therefore you are a covered entity.

  • If you use a Billing Center to file your claims.

  • If you sign a Business Associates Agreement with any entity or third party company.

  • If you are filing ANY claims electronically.

If you are a practice using paper claims under the conditions below, you are NOT a covered Entity, therefore you are not required to be HIPAA compliant:

  • Keep records in your office on paper

  • Filing ONLY paper claims

  • Do not utilize a billing company, clearinghouse or any other third party to conduct transactions such as electronic claim submissions on behalf of your practice.

  • Do not volunteer to become a HIPAA entity by function, contract or certification

  • Do not put any patient or practice information into a computer, all data must be stored on paper.

  • You do not FAX, email or utilize any means of electronic communication.

  • Do not reside in a state that mandates that all providers be HIPAA entities.

If you do ALL of the above, you are NOT a covered entity ad do not have to be compliant.

 

There are four components of HIPAA, they are:

  • Electronic Transaction and Code Set Standards Requirements

  • Privacy Standards Requirements

  • Security Standards Requirements

  • National Identifier Requirements

Who is Affected by HIPAA?

HIPAA requirements apply directly to 3 specific groups commonly referred to as "Covered Entities". These Covered Entities include:

  • Providers - Those who transmit any PHI electronically in connection with a transaction for which standard requirements have been adopted.

  • Health Plans - Thee include any government (Medicare, Medicaid, etc.;) or non-government organizations and private plan that provides or pays for medical care. An exception in the law was granted to State Workers Compensation plans.

  • Health Care Clearinghouses - these are organizations that translate NON-standard information into a standard transaction or convert a standard transaction into a non standard format. This also includes some billing companies and re-pricing Companies.

What can happen if your practice is NOT HIPAA compliant and you ARE a Covered Entity?

Improper use or disclosure of PHI (Private Health Information) can result in the following fines:

  • Civil monetary penalties for HIPAA Privacy Violations are $100 per incident, up to $25,000 per person, per year, and per person.

  • A person who knowingly violates HIPAA and obtains IIHI (Individual Identifiable Health Information) or discusses IIHI to another person may be fined up to $50,000 and imprisoned up to one year, or both.

  • If the offense is committed with the intent to sell, transfer or use IIHI for commercial advantage, personal gain or malicious harm, the fine may be up to $250,000 and imprisonment up to ten (10) years.


 

 

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