Why HIPAA Compliance Matters for Business Associates

Did you know that healthcare is one of the most targeted industries for data breaches? This alarming statistic underscores the need for stringent security measures for business associates handling PHI. In this blog post, we'll discuss the specific HIPAA requirements for business associates and provide practical advice to help you safeguard patient data.

The Role of HIPAA in Protecting Patient Privacy in Healthcare

The Health Insurance Portability and Accountability (HIPAA) Act of 1996 was created to protect an individual’s health information. The Privacy and Security Rule of HIPAA describes in detail the extent of this protection.

According to the HIPAA Privacy Rule, all individually identifiable health information is protected. Identifiable health information includes all information, including demographic data that can relate to a person's past, present, or future health condition, healthcare management, and healthcare payment, and can be used to identify an individual (1).

HIPAA lists about 18 different identifiable health information, some of which include name, date of birth, email address, social security numbers, and so on (2).

The Privacy Rule also describes how certain individuals and organizations should use and disclose a person’s protected health information in all forms and media, whether paper, oral, or electronic. These groups are called covered entities, examples of which include healthcare providers, health plans, and healthcare clearing houses (1).

The HIPAA Security Rule sets the standard on how an individual’s identifiable health information is created, received, used, and transmitted in electronic form. The security rule doesn’t cover identifiable information that is used in writing or orally (3).

Who Is a Business Associate?

A business associate is a person or organization who performs actions on behalf of a covered entity. These actions involve the use or disclosure of individually identifiable health information (4). Examples include claims processing, billing, utilization, review, and data analysis. Entities that do not meet these two descriptions are not called business associates in the HIPAA context.

Business associates provide any of these services:

  • Legal
  • Claims processing
  • Medical transcription
  • Utilization reviews
  • Accounting
  • Consulting

Why Business Associates Need HIPAA Training

Before 2013, business associates and their subcontractors were not directly liable for HIPAA compliance. Their covered entities bore audits and fines on their behalf. However, after the enactment of the Omnibus Rule in 2013 (5), business associates and their subcontractors became liable for compliance breaches and can be audited and fined by the Department of Health and Human Services (HHS) or Office of Civil Rights (OCR).

Potential Consequences of HIPAA Noncompliance for Business Associates

The Enforcement Rule enables federal officials to investigate non-compliance claims (6). These officials can impose penalties, fines, and sanctions and set procedures for hearings. The consequences of these actions can vary from a trivial inconvenience to a devastating outcome, depending on the scope and magnitude.

For example, legal consequences like audits may not only put your business under intense scrutiny, they may stretch for long periods, robbing you of time you can invest elsewhere.

Data breaches can create a tsunami of lawsuits from aggrieved entities. This can set your business on a downward spiral of bankruptcy and bad publicity.

Lastly, a significant legal consequence of noncompliance is imprisonment. In severe cases of noncompliance, convicted business associates can go to jail for criminal negligence.

The business implications are also equally devastating. Financial losses from fines and lawsuits are common examples. Depending on the amount, they can set your business back for a long time.

Apart from costs, the bad publicity can do irreparable damage to a business’s reputation. Every business owner knows how much time and effort it takes to nurture and earn trust from customers. It is painful to watch years of nurturing crumbling under the weight of non-compliance claims.

Steps to HIPAA Compliance for Business Associates

The consequences of non-compliance claims can be devastating. The good news is that you can protect your business from them. If you follow this checklist, you will reduce the risk of liabilities and keep your business on the right track.

  1. Develop and Implement a Fail-Proof Policy

The first step is to develop a fail-proof policy. To do this, you must first have a solid knowledge of HIPAA Rules and Regulations. The details of these can be found here.

Reading them is one thing, grasping the nuances of what is written and translating them into practical terms is another. If you are overwhelmed by all the jargon written there, don’t worry, there is a way out.

We have helped lots of business associates grasp all the fundamental concepts. You can, too. We will show you how at the end of this article.

After gaining a good knowledge of HIPAA policies, you will be able to create a fail-proof policy that has accounted for all aspects of HIPAA’s rules and regulations. This policy should be clearly written with no room for ambiguity.

After creating this policy, communicate it to your workforce, along with mandatory training and education.

  1. Risk Analysis and Risk Assessment

If you suspect that there is a breach in the confidentiality and integrity of a client’s protected health information, do not hold off on risk assessment till the last minute. Do it quickly and thoroughly. You should also do an annual risk assessment as routine and just after a change or upgrade in the workflow.

  1. Business Associate Agreements

Form Business associate agreements with all covered entities you work with, including subcontractors. You will find a draft agreement on the HHS website here. The draft contains the basic components you should include to reduce the risk of liabilities and non-compliance claims.

We Give You a Solid Knowledge of HIPAA Compliance

In over a decade, HIPAA Exams has helped lots of business associates gain a solid knowledge of HIPAA compliance. We believe that the first step to staying liability-free is building a fail-proof policy. To do this, business associates need a thorough, jargon-free knowledge of HIPAA policies and regulations.

We offer accredited courses tailored to meet the unique needs of diverse business associates. These courses break down the dense concepts of HIPAA compliance and translate jargon into practical terms.

And for us, it is beyond getting an accredited certificate to showcase to clients. It is about gaining a sound knowledge of HIPAA and using IT to craft a fail-proof policy that makes your business compliant and liability-free.

Click here to learn more about our exclusive programs. Get started today!

 

 

References

1. US Department of Health and Human Services (2024). The HIPAA Privacy Rule

2. National Cancer Institute (2024). List of HIPAA Identifiers

3. US Department of Health and Human Services (2024). Summary of the HIPAA Security Rule

4. US Department of Health and Human Services (2024). Business Associates

5. US Department of Health and Human Services (2024). Omnibus HIPAA Rulemaking

6. US Department of Health and Human Services (2024). The HIPAA Enforcement Rule