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| Governmental Regulations |
| HIPAA Compliance Deadline Looms |
In an effort to be a caring employer, you might have been known to pass a “get well soon” card around the office so that co-workers could wish Martha well on her bout with pneumonia, or give Frank a boost after his open heart surgery. A bulky piece of Clinton-era legislation ensures that in the future, such niceties will be eliminated in the interest of employee privacy.
HIPAA, or the Health Insurance Portability and Accountability Act, went into effect on April 14, 2003 for larger companies (companies with $5 million or more in gross receipts of medical care costs). Companies with less than $5 million must comply with the new standards by April 14, 2004. Companies with fewer than 50 employees are exempt.
Part of the purpose of HIPAA is to give employees more control over their personal medical records, preventing the possibility of discrimination because of health-related issues. It places tight controls on access to medical information, and prohibits employers from disclosing health-related information (including details about employees’ hospital stays). The Act is also intended to make health management more efficient. Unfortunately, employers are bearing the cost of these new protections, and many are unaware of the complexities of the new law. Among larger companies, the preparations have equaled or exceeded those precautions taken to get ready for Y2K.1
One realistic option for companies who don’t have the time or the resources for that kind of preparation, is to outsource HIPAA compliance efforts. Enrolling with a PEO, for example, gives you the benefit of access to Human Resources personnel who can walk your company through the compliance process. If you have concerns about HIPAA, or questions about how our Human Resources team can assist you, please call today.
1 “Ready or Not, Here Comes HIPAA.” Industry Week. http://www6.lexisnexis.com/wpublisher/EndUser?Action=UserDisplayFullDocument&orgId=90&topicId=14916&docId=l:22961380
For more information on compliance, visit:
http://hr1.blr.com/elert_current.cfm?id=1252
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