Advance Healthcare Planning
What is HIPAA?
start my ESTATE PLAN

What is HIPAA?

By 

Jennifer Mcgee

Head of Legal at TrulyWill

TABLE OF CONTENTS

1. What is HIPAA?

2. Purpose of HIPAA?

3. What are the 5 components of HIPAA?

4. What information is covered under HIPAA?

5. What is the HIPAA Privacy rule?

6. What are Privacy rule penalties?

7. How Trulywill can help?

What is HIPAA?

HIPAA is the US statute of the year 1996 i.e. Health Insurance Portability and Accountability Act,1996 which was enacted on 21 August to provide security to the medical information and records of the patient. HIPAA is the prevailing law, it overrides the state laws but if any state’s law is stringent then the state laws will be implemented.

Purpose of HIPAA?

HIPAA is a Public law that aims to protect and do public welfare. As the Right to privacy is one of the fundamental rights, HIPAA ensures that people must get full insurance coverage along with privacy and security of their information to protect them from any abuse and fraud.

The Protected Healthcare Information (PHI) under HIPAA can be

  • Physical health & condition of an individual/patient either in the past, present or future.
  • Past, present, and future healthcare services payments by the individual/patient.
  • Healthcare services are rendered to the patient.
  • No disclosure of any of the identifiers listed by HIPAA such as names, fingerprints, Medical report number, phone number, email id, IP address number, social security number, bank account number, etc.

What are the 5 components of HIPAA?

HIPAA is divided into 5 sections:

  • HIPAA Health Insurance Reform
  • HIPAA Administrative Simplification
  • HIPAA Tax-Related Provisions
  • Group Health Plan Requirements
  • Revenue Offsets

Under these sections, HIPAA has an objective 

  • to direct the Healthcare organizations to comply with the Privacy rules by the US Department of Health & Human Services (HHS), 
  • to include tax-related provisions on healthcare, 
  • to provide Health Insurance forms and the pre-conditions/ requirements to fulfill before filling the forms,
  • to provide provisions related to tax revenue from company-owned life insurance and those who have lost their US citizenship, etc.

What information is covered under HIPAA?

Any information that reveals the identity of an individual is covered under HIPAA. There are 18 listed items in HIPAA for such information, you can check below:

  1. Full names or last name and initial
  2. Phone Numbers including area code
  3. Biometric identifiers
  4. Photographs of an individual
  5. Fax number
  6. Any geographical identifiers
  7. Email id address
  8. Web Uniform Resource Locators (URLs)
  9. Internet Protocol (IP) address numbers
  10. Social Security number
  11. Medical record numbers
  12. Dates like birthday or treatment dates
  13. Health insurance beneficiary numbers
  14. Bank Account numbers
  15. Certificates/driver's license numbers
  16. Vehicle Identification number & license plate number, as well
  17. Device identifiers and serial numbers
  18. Except the unique code assigned by the investigator to code the data, any other unique identifying number or code will be a personal identifier under HIPAA.

 

What is the HIPAA Privacy rule?

The information about an individual under HIPAA such as Protected Health Information (PHI) or Personal Health Records (PHR) is limited and protected by the HIPAA provisions. Any entity covered under HIPAA is not allowed to disclose any PHI-sensitive information of the patient to a third party. 

This was aimed to provide confidence in healthcare providers & protection against any fraud or abuse to the individuals/patients.

These entities are divided into Healthcare planning organizations, Healthcare Providers, and Healthcare cleaning houses. Any violation of the HIPAA Privacy Rule will result in a penalty.

What are Privacy rule penalties?

The penalty is imposed on the noncompliance and violation of Privacy rule under HIPAA depending on the severity of the violation:

  1. Unintentional  violation of  HIPAA is  penalized for $100 per violation, with an annual maximum of $25,000 for repeat violations.
  2. Violating HIPAA for a reasonable cause is penalized for $1,000 per violation and maximum of $100,000 for repeat violations.
  3. Intentional and willful violation of HIPAA, but if the violation is corrected within a given time period then fine will be imposed for $10,000 per violation and maximum of $250,000 for repeat violations.
  4. Willful violation of HIPAA provisions and the violation remains uncorrected then fine will be imposed for $50,000 per violation & maximum of $1.5 million for repeat violations.

How Trulywill can help?

We provide a quick and hassle-free online platform to create a Will or Trust to plan your estate or healthcare. In just 3 simple steps just like 1, 2 & 3 you can make a valid Estate or Healthcare Plan at the most affordable cost online. Guess what, we give a 30-day money-back offer!

Got Questions?

Hi, I’m Jennifer McGee.

Co-founder & Head of Legal at TrulyWill

Feel free to book a call with me to help you with your estate plan.

Book a free session
Confused about what’s best for you?
Thinking if you even need this right now?
Take the quiz
Thinking of creating a will to secure your loved ones?
Start your estate plan online
  • Resume anytime
  • Done from your home
  • Expert support when you need it
What is a HIPAA violation?
HIPAA has provisions regarding the safety and security of the patient and his privacy. If any of the provisions are violated or the information covered under HIPAA is disclosed to a third party then it will amount to a violation of the HIPAA Privacy Rule and liable for penalty.
What are HIPAA-covered entities?
The HIPAA-covered entities are those organizations that deal directly in any Protected Health Information (PHI) or Personal Health Records (PHR), the items are listed above in the blog for your reference. These entities are divided into Healthcare planning organizations, Healthcare Providers, and Healthcare cleaning houses. What are HIPAA-covered entities?
What are the 3 major things addressed in HIPAA law?
The 3 major things addressed in HIPAA is the Health Insurance Reforms, reduced fraud and abuse in the Healthcare Industry by restricting the disclosure of the patient’s health information and HIPAA lastly kickstarted the momentum of healthcare by introducing the administration’s healthcare reforms.
When does a state law supersede HIPAA?
HIPAA is the prevailing law, it overrides the state laws but if any state’s law is stringent then the state laws will be implemented.
What is an example of PHI in HIPAA?
Personal Healthcare Information (PHI) includes names, dates of birth, addresses, phone numbers, email addresses, Social Security numbers, insurance ID numbers, health care records, full facial photos, etc. Disclosure of such data can lead to HIPAA violations & fines.
Back to top