HFMA studies HIPPA's impact on banking relationships - HFMA News - Healthcare Financial Management Association, Health Insurance Portability and Accountability Act - Brief Article

Healthcare Financial Management, Oct, 2002

HFMA has published a report to help healthcare providers and payers evaluate how the Health Insurance Portability and Accountability Act (HIPAA) of 1 996 may affect their relationships with banks.

HFMA President and CEO Richard L. Clarke, FHFMA, says, "The role that HIPAA plays in the relationships between banks and healthcare entities largely has been overlooked as the healthcare community prepares to implement HIPAA. However, healthcare providers and payers are held responsible not only for their own actions to comply with the regulations, but also the actions of their business partners. Therefore, providers must take an active role in ensuring that the banks they do business with fully comply with HIPAA's requirements."

Banks are subject to HIPPA's privacy and security requirements when they perform functions that involve the processing of explanation-of-benefits data or other protected patient information on behalf of payers and providers. Consumer-initiated transactions, such as cashing patients' checks and processing patients' credit card payments, are exempt from HIPAA.

HFMA's report suggests HIPAA is not receiving attention in the banking community for several reasons. Most banks are too preoccupied with the new privacy aspects of the Gramm Leach Bliley Act (Pub. Law 106-102) to make HIPAA a priority. Also, banks may overestimate the protective aspects of the financial services exemption in HIPAA's privacy law and regulation.

The report also explains how HIPAA affects banks with healthcare clients, and includes a brief questionnaire that healthcare payers and providers can use to determine whether their banking relationships require a business associate agreement. Members can download a 'free copy of the report at http://www.hfma.org/resource/focus_areas/HIPAA@Work/articles/7_26_200 2.htm.