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Why Does Your Business Need to be HIPAA Compliant

Health Insurance Portability and Accountability Act or HIPAA ensure that sensitive information regarding worker’s medical health remains free from any unauthorized accesses. Health Insurance Portability and Accountability Act sets a strict standard that is to be followed by every organization or business entity being either directly or indirectly subjected to it. Following the rules and regulations stated by the Health Insurance Portability and Accountability Act will ensure safeguard or employee details and promote medical growth, however, disobeying or rebelling against any of the rules and laws stated by the HIPAA will cause the organization to face legal penalties.

Therefore, complying with the standards stated by the Health Insurance Portability and Accountability Act is essential for any organization or business practice. A safe way of finding out whether or not the HIPAA conditions apply to your business or not is by determining if your offerings include handling any Protected Health Information or more commonly referred to as PHI. If your company deals with Protected Health Information or PHI, then you fall directly under regulations stated by the Health Insurance Portability and Accountability Act. If you do not follow or implement rules as decided by the HIPAA, i.e., you “DO NOT” comply with the Health Insurance Portability and Accountability Act, then you are subject to potential civil and criminal penalties as a result of HIPAA violations.

The HIPAA rule does not discriminate between Covered Entities and their Business Associates when it comes to implementing its regulations and policies.  The providers of treatment, payment, and operations in healthcare are labeled under Converted Entities while Business associates are organizations that have access to protected health information. Additionally, Health Insurance Portability and Accountability Act has its very own Privacy Rule, that forces organizations to comply with its terms and conditions. The United States Department of Health and Human Services, more frequently known as HHS issued the privacy rule. Health Insurance Portability and Accountability Acts Privacy rule implement certain restrictions, primarily the unauthorized use and disclosure of sensitive and persona; health information of individuals by the business entities, who are subjected to the Rule.

Hence implementing and imposing the HIPAA Privacy Rule concerning voluntary compliance activities is absolute, along with forced compliance regarding civil money penalties. The Health Insurance Portability and Accountability Act Security Rule also comes with certain demands and requirements. By enforcing certain administrative safeguards, physical safeguards, and technical safeguard as a form of willing compliance will help to maintain a safe, well functioning system. This in return, helps in maintaining the confidentiality, integrity and protected health information of employees from unauthorized third parties.  To make sure that your business entity is following the rules and regulations stated by the Health Insurance Portability and Accountability Act, four main laws are to be enforced;

  • Protecting and Safeguarding information regarding the workers, patients, and clients.
  • Implement restrictions to limit the share of any health-related information to the minimum necessary to accomplish your intended purpose.
  • Make certain agreements in place with selected service providers who perform covered functions.
  • Implement procedure and policies that limit access to patients or employee’s health information.

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