News: Stimulus package alters HIPAA rules for business associates

By Steven M. Harris, AMNews contributor - Posted May 4, 2009

The American Recovery and Reinvestment Act, better known as the stimulus bill, is notable for the $19 billion it offers for incentives to adopt and use health information technology. But it also expands the reach of the Health Insurance Portability and Accountability Act.

Specifically, the stimulus bill expands the reach of privacy and security rules implemented under HIPAA to cover business associates and covered entities.

It's been six years since you were first required to understand those terms for following HIPAA. But in case you need a refresher, a covered entity is a health plan, health care clearinghouse (billing services, community health information system and the like), or a hospital or physician who transmits health information in electronic form.

A business associate is someone who, on behalf of a covered entity, performs an activity involving the use of disclosure of individuals' health care information.

That includes the performance of legal, actuarial, accounting, consulting, data aggregation, management, administrative, accreditation, or financial services to or for a covered entity.

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