Seattle, WA (USA)-- May 16, 2004-- As of April 14, 2004, small health plans (those with annual receipts of $5 million or less) must become compliant with the HIPAA (Health Insurance Portability and Accountability Act) privacy rules.

And while many of these plans (particularly fully insured plans) will have relatively little to fear, the prudent small businessperson will want to review the literature and his or her procedures to make sure their policies and procedures are up to snuff.

Who must comply with these new HIPAA privacy standards?

As required by Congress in HIPAA, the Privacy Rule covers:

- Health plans
- Health care clearinghouses
- Health care providers who conduct certain financial and administrative transactions electronically. These electronic transactions are those for which standards have been adopted by the Secretary under HIPAA, such as electronic billing and fund transfers.

These entities (collectively called covered entities) are bound by the new privacy standards even if they contract with others (called business associates) to perform some of their essential functions. The law does not give the Department of Health and Human Services (HHS) the authority to regulate other types of private businesses or public agencies through this regulation. For example, HHS does not have the authority to regulate employers, life insurance companies, or public agencies that deliver social security or welfare benefits. See the fact sheet and frequently asked questions and for more information, visit the general HIPAA Privacy page at HHS/Office of Civil Rights: Office for Civil Rights - HIPAA Medical Privacy - National Standards to Protect the Privacy of Personal Health Information.

Questions and Answers the Q & A page - U.S. Department of Health & Human Services - 200 Independence Avenue, S.W. - Washington, D.C. 20201.

The NAM (National Association of Manufacturers) has sponsored a compliance guide for HIPAA privacy.

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