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Hello,
In
this issue
HHS
to release regulations governing privacy breaches and new penalties
The Department
of Health and Human Services (HHS) is expected to issue final regulations
later this summer outlining the first set of stringent new privacy and
security requirements for protected health information (PHI). These new
regulations, including penalties of up to $1.5 million per year, were
included in the American Recovery and Reinvestment Act of 2009 (ARRA) –
otherwise known as the stimulus package – that became law in January.
ARRA
mandated strengthening a number of the privacy and security provisions of
the Health Insurance Portability and Accountability Act (HIPAA). Under the
new requirements, physician practices must notify patients if a breach of
their unsecured PHI) occurs. Practices will have to notify patients within
60 days of the breach, regardless of whether the PHI is in electronic or
paper form. Notification to the patient must be by letter and, if more than
500 patients are involved, the practice must also contact the local media
and report the breach to HHS.
In
addition to the breach notification requirement, ARRA also expands HIPAA
by:
- Imposing
additional requirements on business associates (which will require
modification of business association agreements);
- Adding
complicated new requirements to account for disclosures of PHI, should
the practice use an electronic health record;
- Imposing new
requirements on practices to make patients’ PHI available to them in
an electronic format;
- Allowing
patients to request restrictions on certain disclosures of PHI; and
- Significantly
increasing penalties for violations of HIPAA. The tiered penalty
structure outlines fines of up to $50,000 for each violation and
a maximum of $1.5 million a year.
HHS is
required to release an interim final rule to implement these requirements
by Aug. 17. Medical practices and all other covered entities must comply
within 30 days of the release of the rule.
Register
for MGMA’s upcoming Webinar on this topic to learn more about the
effects of these changes on your practice.
Update:
Congressional efforts to address health care reform
Late last
week, two House committees with jurisdiction over health care issues
approved amended versions of “America's Affordable Health Choices Act” (H.R.
3200). The third committee of jurisdiction, the Energy and Commerce,
continues to discuss the bill and consider amendments as it attempts to
vote on final passage. The three committee versions of H.R. 3200 will then
be merged into a single bill to be considered by the full House of
Representatives. House majority leadership intends to move legislation to
the floor before the summer recess begins on July 31. The House of
Representatives’ current health care reform bill repeals the flawed
Medicare physician payment policy, known as the sustainable growth rate
(SGR); eliminates the scheduled 21.5 percent payment reduction for
physicians; and provides a payment in 2010 equivalent to the Medicare
Economic Index (MEI) – anticipated to be approximately 1 percent.
The
Senate Health, Education, Labor and Pensions (HELP) Committee recently
passed its version of the “Affordable
Health Choices Act” last week. However the Senate Finance Committee,
which has direct jurisdiction over Medicare and federal revenues, has not
yet formally introduced its bill.
Several
differences exist among the three House versions of health care reform
legislation and the Senate HELP version. Of particular concern is that, to
date, no Senate bill repeals the SGR. Therefore, the Medical Group
Management Association (MGMA) needs you to contact your senators and tell
them to do so. Ask them to replace the SGR with a method that
accurately reimburses physician practices for the costs of providing
quality care to Medicare beneficiaries.
MGMA
continues to analyze changes to the House legislation that affect medical
group practices. Find updates in the MGMA Washington Connexion and in the MGMA
Health Care Reform Resource Center.
E-mail
your senators today!
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