In 1996, the United States Congress passed the Health Insurance Portability and Accountability Act, also known as “HIPAA.” The purpose of this act was to improve the way healthcare information was managed and distributed and also provide additional protections for consumers.
This act was passed in the midst of the “digital revolution” that saw major data management changes occurring in almost every industry — healthcare was no exception. Despite some initial opposition in the House, the bill eventually cleared the Senate with a 100-0 vote (a rare accomplishment for anything related to healthcare). Now, more than 20 years since President Clinton signed this bill into law, businesses in healthcare and other related industries, including health insurance companies, are still trying to determine which regulations, if any, actively apply to them.
HIPAA Passed a New Set of Digital Regulations for Businesses
The Act itself is incredibly long and, in order to make things a bit easier for businesses to digest, is broken into five distinct sections. The second section is titled “Preventing Health Care Fraud and Abuse; Administration Simplification; Medical Liability Reform.” When compared to the other sections featured in the bill, this section is particularly concerned with information management regulations. As we continue to move into the digital era, many of these regulations have become even more relevant than when the bill was initially passed.
Navigating the government’s web of regulations — and corresponding programs — can often be very confusing. In this article, we will discuss the current consequences of passing HIPAA and how this bill has impacted many businesses’ patient statement printing and mailing needs. We will also discuss a few things your business can do to improve its statement management practices in ways that are both compliant with HIPAA and good for your bottom line, such as utilizing HIPAA-compliant printing services.
What Are the Most Important Components of HIPAA, Title II?
Two of the most “personal” categories of information related to any given person will be their financial information and information regarding their health. Naturally, the need to protect healthcare documents and information has always been present in the healthcare industry, where finance and health uniquely intersect. The healthcare industry has been notoriously subject to fraud, stolen information, misuse of information, and even outright scams (particularly scams targeting senior citizens).
In order to minimize these active risks, the Federal Government passed HIPAA and attempted to create a universal set of healthcare information management standards. HIPAA established a specific category of information, known as “protected health information” (PHI), to which all related regulations would apply. Following the act, it was no longer just the “right thing to do” to protect consumer’s information, but (due to the introduction of various fees) it also became the financially justifiable thing to do as well.
When it comes to statement distribution and information management, Title II of HIPAA is overwhelmingly the most relevant part of the bill. Some of the key rules found in this section include:
- Privacy Rules: Throughout this section of the bill, the information that can (and cannot) be distributed by healthcare providers is clearly defined. In practice, PHI has had a rather broad interpretation—most personal health and financial information is considered to be private information (with some exceptions). Not only does intentionally distributing this information result in a fine but even accidentally allowing this information to get into the wrong hands can also result in a fine.
- Right to Access to PHI: The bill also states that not only must PHI remain (relatively) private, but all citizens have the right to view their own PHI. Consequently, it helps make it easier for individuals to change providers and test the open market.
- Security Rules: In addition to encouraging security by introducing fines, the security portion of Title II also establishes some basic security standards. This portion discusses electronic and paper communication forms, meaning that almost all financial or health information will be affected in some way.
Following the introduction of these regulations, many healthcare industry companies had to move quickly to protect themselves from future litigation. Since the rules first began being enforced in 2003, more than 20,000 cases have resulted in either the use or threat of fines (some companies were allowed to make changes before being fined).
Why Is It Important for Businesses To Have Secure Patient Statement Printing Practices?
Currently, the Department of Health and Human Services, which is in charge of implementing HIPAA — has identified five categories of rule violations that are frequently violated. These five categories (sorted by most frequent to least frequent) are:
- Misuse and disclosure of PHI.
- No protection in place of health information.
- Patients are unable to access their health information.
- Using or disclosing more than the minimum necessary protected health information.
- No safeguards for electronically protected health information.
HIPAA privacy rules are serious, and it’s crucial that healthcare organizations follow them to the letter. The enforcement of these regulations is by no means an empty threat, nor a threat solely being leveraged against Fortune 500 healthcare companies. In fact, in 2012, a small organization, the Hospice of North Idaho, was fined $50,000 for its lack of information safeguards and improper risk analysis practices. In this instance, the health information of 441 patients was stolen electronically. Since then, many other small businesses have also been prosecuted — some of these companies even went out of business.
Following HIPAA regulations is morally right and lawful. Additionally, following HIPAA mailing guidelines and other related regulations will ensure HIPAA-compliant mailing, which will benefit a healthcare business’ bottom line. The cost of losing patient information will far outweigh the benefits (if any) of keeping this information at risk.
How Can My Business Maintain HIPAA Compliance?
Now that you understand the impact and importance of HIPAA regulations and HIPAA printer security, you may be wondering what implications these regulations may have for your business. If your business is heavily involved in the healthcare industry, it will be well worth investing in assuring HIPAA compliance in all communications.
To protect your business from the risks of failed HIPAA compliance, you should hire a patient printing and mailing company that emphasizes HIPAA compliance. These companies are familiar with all of the protocols, reporting requirements, and information delivery requirements that HIPAA demands.
By hiring a statement printing and mailing partner that is HIPAA compliant, your business can ensure secure mailing services, protect itself from lawsuits and penalties, and improve its communication network. Paying a firm $10,000 per year to manage these tasks will be worth it, considering the hundreds of thousands — even millions — of dollars your company may have to pay out in a lawsuit. Though you will need to do plenty of research before making any firm outsourcing commitments, it will be worth it.
Secure and Compliant Patient Statement Services
Because the consequences of breaking HIPAA’s regulations can cause your business to go under, it may be worth looking into getting some professional outside help to make sure your patient statement and printing processes follow HIPAA regulations. Utilizing HIPAA-compliant printing services can help ensure that your printing processes are secure and meet all necessary compliance standards.
For more information about HIPAA-compliant statement printing services, contact the experts at SmartPayables at (720) 287-0030 or leave a message here.
Founded in 2005, Smart Payables offers a full range of accounts payable payment solutions including outsourced check printing and mailing, document and statement printing and mailing, ACH direct deposits + more. Our highly experienced software developers and intelligent printing teams specialize in secure, enterprise-grade payment options that are HIPAA, SOC 1 Type 2, and ISO compliant. Our mission is to help businesses and large organizations implement secure, innovative technology that will reduce overhead and improve business operations and capabilities.