HIPAA Medical Privacy Rule: Information for NC Public Agencies

 

Frequently Asked Questions

Who is required to comply with the HIPAA Administrative Simplification regulations?

  • Covered entities: Three categories of "covered entities"1 are required to comply with all of the Administrative Simplification regulations:
    • Health plans
    • Health care clearinghouses
    • Health care providers that transmit health information electronically in connection with a HIPAA transaction

  • Health plans in local government: Some cities and counties provide self-insured health, dental and vision insurance to employees. These programs may be affected by HIPAA because of their relationships with "health plans." Workers' compensation programs, however, are specifically excluded from the definition of health plan.2

  • Health care clearinghouses in local government: A health care clearinghouse is generally defined as an entity that converts information from one electronic format into a HIPAA electronic format (and vice versa). It is unlikely that a city or county owns or operates a health care clearinghouse.

  • Health care providers in local government: Several different local government agencies may be covered health care providers because they (1) meet the HIPAA definition of "health care provider" and (2) transmit health information electronically in connection with a HIPAA transaction (such as filing an insurance claim or verifying eligibility for insurance coverage). The term "health care provider" is defined very broadly to include any person or organization that furnishes, bills or is paid for health care in the normal course of business. For example, local health departments, mental health area authorities, departments of social services and emergency medical services agencies may all be "health care providers" that transmit HIPAA transactions electronically. Some of these departments or agencies may serve multiple counties. In some instances, counties contract with private entities for the provision of some types of health care (such as emergency medical services).

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145 C.F.R. § 160.103 (definitions of "covered entity," "health plan," "health care clearinghouse," and "health care provider"); 45 C.F.R. Part 162 (definitions of HIPAA transactions, including claims, eligibility verification, referral certification, enrollment in a health plan, and payment).
245 C.F.R. § 160.103 (definition of "health plan" excludes programs that provide for "excepted benefits" which includes workers' compensation programs).

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