Expected to reach USD 430.52 Bn by 2028, Digital Health Market is one of the fastest-growing sectors in the world. As a result, the world is seeing a boom in the number of digital health companies. With this increase, privacy and security of personal health data are common concerns. To avoid the loss of valuable personal data, health companies must comply with various regulations. One among them is HIPAA compliance.
This article details everything about HIPAA compliance and how it applies to health companies.
What is HIPAA?
Health Insurance Portability and Accountability Act (HIPAA) is a federal law passed by the US Congress in 1996. It was passed to protect people from losing their health insurance when they changed jobs or had pre-existing health conditions. Most importantly, it aimed to reduce the huge bills of administrative burdens of healthcare transactions.
Over the years, HIPAA has been updated to protect the privacy and security of electronic Protected Health Information (e-PHI).
What are the three rules of HIPAA?
HIPAA outlays three rules to protect the privacy and security of PHI.
- Privacy Rule
- Security Rule
- Breach notification rule
These rules set national standards for all health companies to abide by.
- Privacy rule
This rule safeguards the privacy of patient data. It restricts health companies to use or disclose health data that could identify a person without their permission.
- Security rule
This rule protects electronic PHI (ePHI). It ensures all health companies have risk management plans to ensure the welfare and confidentiality of ePHI.
- Breach notification rule
In case of a data breach, this rule ensures all affected people are notified. It holds health companies accountable to their customers.
HIPAA Safeguards health companies need to implement
Health companies are bound to implement HIPAA safeguards to avoid comprising PHI.
- Physical safeguards
To protect the physical security of offices where PHI and EPHI are stored and updated. Eg, alarm and security systems
- Technical safeguards
Advanced cyber security protection to ensure the security of ePHI. Eg, Data backup and encryption
- Administrative safeguards
Train employees to execute adequate security measures in proper order.
What happens if healthcare companies violate HIPAA?
HIPAA governs all companies dealing with health information alongside health companies. Violation of HIPAA standards by any company leads to a penalty of $50,000 per violation and increases up to $1.5 million per identical penalty.
Can health companies disclose PHI?
Health companies can disclose PHI in special circumstances like:
- The patient has authorised them to share PHI.
- For treatment, payment, or general healthcare operations
In such cases, the company must obtain patients’ authorization and written consent. It must also provide patients with a Notice of Privacy Practices (NPP).
Bottom line
Personal health data is confidential and needs to be protected. HIPAA understands this and ensures the highest degree of data protection. It saves you from huge hospital bills and also safeguards your health insurance.
