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According to HHS, these regulations represent “the most sweeping changes to the HIPAA Privacy and Security Rules since they were first implemented.” The regulations are based on changes under the Health Information Technology for Economic and Clinical Health (HITECH) Act and the Genetic Information Nondiscrimination Act of 2008 (GINA).

New provisions

Although the new regulations and the changes to the HIPAA rules mainly affect the healthcare community, there are some things employers that sponsor HIPAA-covered plans need to think about:

• Privacy notice updates. The HIPAA final regulations require several updates to the privacy notice required under the HIPAA Privacy Rule.
• Business associates. The new regulations also change the HIPAA rules by expanding the definition of a business associate to include subcontractors and altering what business associate agreements must contain.
• Breach notification requirements. The final regulations provide that an acquisition, access, use, or disclosure of protected health information (PHI) in an impermissible manner is presumed to be a breach unless the covered entity or business associate demonstrates that there is a low probability that the PHI has been compromised based on a risk assessment of at least four factors set out in the regulations.

Other provisions and deadlines

The new regulations also make various other changes. For example, they increase penalties for noncompliance with the HIPAA rules. They also expand the rights of individuals in several ways (e.g., by allowing patients to ask for a copy of their electronic medical records in electronic form and by setting new limits on how individuals’ information is used and disclosed for fundraising and marketing reasons).
The new final regulations are effective on March 26, 2013, and covered entities and business associates must generally comply with the applicable requirements of the final regulations by September 23, 2013.
Jessica Webb-Ayer, J.D., is an attorney editor for BLR’s human resources and employment law publications. She has written and edited countless publications on labor and employment law and is the editor of the Benefits Compliance Advisor online newsletter and the benefits manual, Benefits Compliance: Strategies for Plans, Programs & Policies. Ms. Webb-Ayer has also worked on various Americans with Disabilities Act (ADA) and workers’ compensation/safety products. She graduated summa cum laude with a B.A. in Psychology from Lipscomb University in Nashville, Tennessee, and graduated cum laude with a law degree from the University of Tennessee College of Law in Knoxville, Tennessee. Ms. Webb-Ayer is licensed to practice law in Tennessee.
ANAMIKA SINGH     
PGDM 2nd sem         20/3 2013