Frequently Asked Question on HIPAA
What are the main objectives of HIPAA?
1. Accountability. HIPAA hopefully will reduce waste, fraud, and abuse. New penalties will be imposed.
2. Insurance Reform. HIPAA offers continuity and portability of health insurance, as well as providing limits on pre-existing provisions.
3. Administrative simplification. HIPAA mandates standards on electronic data transactions in a confidential and secure manner.
Who must comply with HIPAA?
Any healthcare provider that electronically stores, processes or transmits medical records, medical claims, remittances, or certifications must comply with HIPAA regulations. HIPAA does not require a practice to purchase a computer-based system as it applies only to electronic medical transactions.
What is the difference between HIPAA-ready and HIPPA-compliant?
HIPAA-ready typically refers to software products used by healthcare providers, insurance companies and clearing houses that comply with HIPAA guidelines. HIPAA-compliant refers to the doctors, hospitals and insurance companies themselves that are in compliance with HIPAA regulations.
Does HIPAA specify how compliance is to be achieved?
No. HIPAA regulations give health-care organizations the decision to decide how they will implement HIPAA compliance, and are technology and software-neutral.
What are the HIPPA compliance deadlines?
1. Privacy Rule: April 14, 2006
2. Transactions & Code Set Rule: October 16, 2006
3. Security Rule: April 21, 2006
(Note: The deadline dates are one year later for small businesses)
What are the penalties for HIPAA non-compliance?
Fines up to $25,000 for multiple violations, $250,000 or imprisonment up to 10 years for knowing abuse or misuse of individually-identifiable health information.
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