HHS has recently released final rules modifying HIPAA under the HITECH Act. The rules make several changes for both providers and business associates. First, the regulations expand the definition of business associate. Thus, businesses need to figure out whether they are now subject to HIPAA. Business associates may face up to $1.5 million in fines per year if they do not comply with the new rules.
Providers will have to make several changes as well. The new rules give providers less flexibility to decide when to report a breach and restrict when PHI can be used for marketing. Providers must provide patients with records in electronic form on request. Also, they must revise their Notices of Privacy Practices. If providers do not comply, they will face harsher fines and new enforcement tools. Providers should start revising their business associate agreements, NPPs, and other policies to comply by September 23.
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