Organizations are responsible for protecting their employees’ personal information. This is regulated under different laws, and by different state and federal agencies. Depending on the kinds of health benefits provided to employees, there are some different regulatory items HR needs to be aware of.
HIPAA applies to employers when the organization has a self-funded or level-funded health plan. In all other cases health information confidentiality falls under the purview of Americans with Disabilities Act (ADA) and/or Family Medical Leave Act regulations.
In most cases, the responsibility for safeguarding health information confidentiality lies within the jurisdiction of the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA) regulations. These two laws play pivotal roles in ensuring that employees’ health-related data is handled with care and respect for their privacy. While HIPAA might not directly apply to most employers, understanding the implications of ADA and FMLA is crucial for maintaining a secure and respectful environment for employees, particularly when addressing absences or FMLA-related health matters.
Now, when does HIPAA become relevant for employers? HIPAA comes into play when an employer chooses to self-insure or go with a level-funded plan, which means they assume the financial risk of providing health benefits to their employees. In this scenario, HIPAA regulations become applicable, and the employer is designated as a Covered Entity, bound by strict privacy and security standards in the handling of employees’ protected health information (PHI) which the HR staff will be seeing as part of their work handling the health plan.
Key Takeaway:
For the vast majority of employers who rely on external insurance providers, it’s not the employer but rather the insurance companies that are the Covered Entities. These insurers must adhere to HIPAA rules when managing health information for the company they provide health insurance to.
If you have determined your company needs to be HIPAA compliant please book a demo to learn about HIPAA Prime. Total HIPAA specializes in making HIPAA compliance an easy and comprehensive way to become cyber secure. We look forward to meeting you!
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