How Does HIPAA Affect Businesses?

HIPAA is a federal ruling that involves the protection and security of health-related patient information. HIPAA affects businesses in that they have to take certain measures and make special accommodations so that the company can be in compliance with HIPAA laws.

History

HIPAA stands for the Health Insurance Portability and Accountability Act, and according to the United States Department of Health and Human Services, HIPAA was instituted in 1996 as a way for the government to regulate the disclosure and use of protected health information (PHI).

Significance

Since HIPAA has to do with the protection and security of patient privacy, it shapes the way that companies do business. Employers have to pay careful attention to what the HIPAA rules require of them, because HIPAA violations lead to penalties.

Types

Businesses must comply with many types of HIPAA rules. Some rules stem from HIPAA privacy laws, while others stem from security laws.

Effects

In response to HIPAA, businesses may have to create privacy policies and procedures for employees to follow, create special HIPAA-proof forms and documents, and set up password protection security features on employee computers. Employers also will need to provide shredding bins for disposal of PHI on the premises.

Benefits

Businesses will benefit from being HIPAA compliant by having a good reputation and maintaining a positive image with patients.

References

• U.S. Department of Health and Human Services: Health Information Privacy