Table of Contents
Introduction:
Most people assume that HIPAA compliance only applies to large hospital systems or large medical organisations when they hear the term. However, small business owners must also be concerned with compliance. Organizations owe it to their patients and customers to keep their data secure.
The Health Insurance Portability and Accountability Act (HIPAA), also known as the “Privacy Rule,” is overseen by the Office for Civil Rights, which is part of the U.S. Department of Health and Human Services (HHS). In a nutshell, this law establishes policies and regulations to protect individuals’ health data.
HIPAA compliance begins with becoming more aware of the rules and how to follow them. You may be unaware of pending audits, lack a compliance plan, or fail to provide HIPAA training to your employees. The privacy rule applies to you as an employer if you pay for any portion of your employees’ health care plans.
How does HIPAA impact small businesses?
HIPAA compliance is not affected by an organization’s size; all healthcare organisations must adhere to the same compliance standards. HIPAA compliance for small businesses should be a top priority because HIPAA fines can easily put a small business out of business.
Small businesses should be concerned not only about HIPAA compliance but also about ransomware attacks. Because hackers know that small businesses are easier to access, they are more vulnerable to ransomware attacks. Many small businesses consider cybersecurity to be a luxury that they cannot afford, but they should consider the costs of a data breach. According to a recent study, the average cost of a healthcare data breach is $6.45 million, which does not include the cost of a HIPAA fine.
The majority of people associate privacy laws with clinical visits. What many small business owners may not realise is that HIPAA privacy laws apply to all entities that handle the flow of patient information. Protected health information can include:
- Discussions – These are discussions among doctors, nurses, and other medical personnel about care or treatment.
- Personal Health Information (PHI) – The patient’s full name and date of birth are both included.
- Medical information – This information can be found in medical records created by doctors, nurses, or other health care providers. It also includes any patient diagnoses, medical records, and patient numbers.
What do small businesses need to know about HIPAA?
Health-related data is one of the most secure types of information. Some HR records, such as sick notes and workers’ compensation claims, only contain snippets of health information in employees’ employment records. Other small businesses that use a self-insured method to pay for medical expenses for their employees have a lot more information.
How much of this data is protected by Act, the Health Insurance Portability and Accountability Act? The information provided below will support small businesses in adhering to compliance laws.
What Information is Safeguarded by HIPAA Laws?
HIPAA does not apply to general employment records in the context of a typical company’s HR practices. While employment records may contain some health information by chance, they do not fall under the purview of HIPAA. The more important consideration, however, is the operation of your employee health plans.
Many companies contract with a health insurance company to provide health benefits. In this case, the insurance company bears the liability.
Assume, on the other hand, that you pay your employees’ medical expenses through a “self-insured” plan. In this case, your company is acting in some ways like an insurance company. HIPAA protects these records, so HIPAA compliance must be a top priority.
Every HR representative must receive HIPAA training:
Many small businesses appoint a compliance officer, who is frequently the designated HR representative or admin. This person is well-versed in HIPAA and is in charge of guiding the rest of the company’s compliance.
While you can have a compliance officer, you must also thoroughly educate the rest of your leadership team. It is possible, no matter how unlikely you believe an employee would be in a position to compromise confidential information.
Establish a well-documented training course that all organisational leaders must complete. When an employee has completed the training, you should have some type of written documentation or certificate to place in his or her file.
Social Engineering Education:
In addition to the fundamentals of the law, educate your employees on how to avoid the risks of social engineering. HIPAA-violating social engineering entails tricking people into disclosing employees’ medical information.
For example, someone may call your office and claim to be a new employee who is unable to access the health plan management software. Your staff gives them the log-in information without thinking. Provide training to employees on how to avoid these situations and detect fraud.
Employee onboarding, however, should not be the only time your HR administrator hears about HIPAA. Consider holding refresher courses regularly to remind employees of the main points. You could also give employees a quiz regularly to see if they still have all of the necessary knowledge.
HIPAA Compliance Must Be a Priority for Your IT Department:
Neglecting to protect against a data breach is one of the most common HIPAA violations. Most people associate HIPAA violations with disclosing personal information to the wrong people. However, leaving the information open to the wrong people is just as bad.
Look for candidates who understand the importance of security when hiring for your IT team. Even if you do not intend to hire new employees, ensure that your IT team has safeguards in place to protect employees’ health plan information.
You Should Go Over Your Health-Care Documents:
If your company is like many others, you contract with a health insurance company to provide health insurance to your employees. Most small businesses assume that these insurance companies will safeguard their employees’ health information. This is not, however, an assumption you should make.
Instead, go over your health plan contracts and make sure you specify that the insurance company must adhere to HIPAA regulations. Check that all of the languages are up to date.
Conclusion:
HIPAA compliance can be a difficult law to grasp. As a small business owner, one of the most important roles you play is ensuring privacy protection. Employees must understand the information that is protected under the privacy rule and that you have a system in place to protect sensitive information. We at security pilgrim are here to assist you in ensuring that your small business remains compliant with various acts and regulations.
