Your Data and Medical Privacy: What Is HIPAA and How Does It Work?

Healthcare data breaches are expensive. There are around 600 breaches per year costing around $500 per incident. That’s 

Enter HIPAA privacy laws. These laws continue to expand to account for growing changes in medical technology.

Take a look at this guide to understanding how medical privacy works under HIPAA laws.

How Does HIPAA Work?

HIPAA stands for Health Insurance Portability and Accountability Act of of 1996. The federal government created a set a standard of medical privacy for healthcare providers to follow nationwide.

Having the standard meant that patients could expect the same level of care and data protection no matter where they live. These laws made it clear that no medical information could be shared without a patient’s consent.

More specifically, the HIPAA Privacy Rule says a patient can say how they want their medical information to be used. This includes naming who can access your records and for how long.

Medical privacy laws usually include a group of doctors. For example, if you’re seeing your primary care doctor for high blood pressure, nurses and staff within the same practice get access to those records as well.

The rule is that they have to use the information for diagnosing or treating patients unless you give permission for them to do anything extra. 

Medical Privacy and Data Breaches

Another part to HIPAA laws is requiring healthcare providers to plan ahead for data breaches. With more than 26 million Americans affected by health related data breaches each year, it’s only a matter of time before a provider is hacked.

The HIPAA Security Rule says healthcare providers need to safeguard against cyber attacks by doing their due diligence. That means researching the best possible cyber security options for their practice and implementing the best solution.

This applies to electronic patient information and not data kept in writing.  So, what if an organization can’t afford to implement a new cyber security system?

They are limited in the amount of patient data they can share electronically. The burden is on the provider to find the best cyber security solution for their business.

There are some grants available from the government that allow smaller providers to increase their security. The practice must meet certain requirements before the government steps in to subsidize.

In most cases, it’s much easier for a provider to use their own security methods because it gives them control over infrastructure changes. 

Contact your state’s Health Information Technology for Economic and Clinical Health (HITECH) for more information on funding. The HITECH Act provides funding to healthcare providers in the process of setting up Electronic Health Records (EHRs).

Who Follows HIPAA Laws?

Unfortunately for patients, not every business has to follow HIPAA laws. There are specific types of businesses that HIPAA regulates.

These include healthcare providers, health plans, healthcare clearinghouses and business associates. These organizations have to follow HIPAA rules each in their own way.

Healthcare Providers

It doesn’t matter how large or small your practice, you are subject to HIPAA laws if you maintain electronic health records. These records aren’t just diagnoses or lab reports.

It could be claims or other financial data. Even referrals are protected by HIPAA rules and regulations. 

Health Plans

Health Plans or insurance providers are also included in the HIPAA Privacy Act. These are companies that pay the cost of your medical care including vision, prescription drugs and dental. 

An employer sponsored group plan might also be included in this lot. But there’s one except to this rule. 

Health plans with less than 50 participants won’t be subject to HIPAA medical privacy laws if it’s managed by an employer. The employer must be the sole manager and not a covered entity. 

Healthcare Clearinghouses

There are companies that manage information received from other businesses. These organizations convert health data into certain standardized formats so its easier to store. 

These healthcare clearinghouses get sensitive patient information all the time when processing records. They must protect the information received and make sure they are at the mercy of hackers. 

Business Associates

This category is a catch-all term for any business that uses identifiable health data provided by a covered entity. These might include a hospital vendor or third-party IT provider.

Because these companies access sensitive patient data, they need HIPAA processes in place to prevent the possibility of a breach.

Becoming HIPAA Compliant

HIPAA laws apply to just about any business in the healthcare field. If you’re information is stored on a computer at any point, it’s protected by federal HIPAA laws.

Organizations need to find adaptable solutions to growing technology changes. Patients expect more mobile access which increases the need for different types of security.

Companies can reduce costs by relying on a shortlist of electronic health record options for patients.  For example, a healthcare provider might offer an online website portal for patient billing but not a mobile app. 

These limited electronic options help minimize exposure to hackers. It’s important to learn more about hipaa cases so you can play defense in the game of cyber security.

Privacy Laws to the Rescue

Medical privacy wasn’t standardized until 1996. Patient health records were at the mercy of their individual providers until the federal government started putting rules in place.

These rules keep businesses honest that might otherwise block your access to healthcare because of your medical history. Having HIPAA laws in place protects you discrimination and helps you ensure your providers have your best interest in mind. 

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