Part II - Employers : “4 Buckets”

1. Fully-Insured GHP (Summary Info) Fully-Insured GHP (receives PHI) Self-Funded GHP Part II - Employers : “4 Buckets” EMPLOYER

2. Employer-specific HIPAA Privacy Terms • “Summary Information” • “Plan Administration”

3. Summary Information • Summarizes claims history, claims expenses, or claim type of participants in a GHP • Essentially is a category of information somewhere between de-identified data and PHI • “Step above” De-identified information because it has some identifiers • Uses/Disclosures are limited to 3 purposes

4. Plan Administration • GHP “Operations” and “Payment” • Plan Administration functions performed by Plan Sponsor/Employer (or its TPA) • excludes functions performed in connection with any other plan of the Employer • unless OHCA with other GHPs

5. BUCKET # 1 Employer as “Employer” ( HR Manager)

6. Bucket #1: Employer • Employer as HR Manager • Hiring, Firing • FMLA Leave • Disability Leave • Workers’ Compensation Claims • Medical Absences • Drug and Alcohol Screening • Fitness for Duty Tests • HIPAA does not regulate Employer in this Bucket!

7. BUCKET # 2 Self-Funded GHP (Receives PHI)

8. Self-Funded GHP BUCKET # 2 - Self-Funded GHP • Health benefits funded by employer • Claims administered internally • Creates PHI • MUST provide Notice of Privacy Practices • MUST comply with all of Privacy Rule’s Administrative Requirements • MUST amend Plan Document, provide Certification Statement, and make organizational changes

9. BUCKET # 3 Employer Insured GHP (Summary Info)

10. Employer insured (Summary Info) BUCKET # 3 - Insured GHP • Health benefits insured by employer • Insurer does not provide PHI back to GHP or Sponsor • DOES NOT need to provide Notice and comply with most of the Privacy Rule’s Administrative Requirements (except for non-waiver and non-retaliation) • Assumption: Sponsor does not receive PHI beyond summary information for the 3 allowed uses • EXCEPTED from Plan Amendment and Certification requirements

11. BUCKET # 4 Fully-Insured GHP (Full PHI)

12. Fully-Insured GHP (PHI) BUCKET # 4 - Fully-Insured GHP • GHP provides health benefits solely through a health insurance issuer or HMO • If Sponsor receives more than summary information: • Unique Notice obligations • Must do Plan Amendment & Certification • Issue: Comply with all Admin. Req’ts.? • Gray area: e.g., where Plan Sponsor does not receive PHI from insurer but may assist employees with claims issues (advocacy)

13. Privacy Rule Requirements For Self-funded GHP • Notice Requirements • Amend Plan Documents • Certification Statement • Individual Rights • Administrative Requirements

14. Content of the Notice of Privacy Practices • Plain Language • Uniform Header • Description and at least one example each of the types of uses and disclosures made for treatment, payment, and health care operations • Description of each of the other purposes for which a use or disclosure is permitted or required without authorization

15. Content of the Notice of Privacy Practices (cont.) • Each purpose must have “sufficient detail” to put individual on notice • Statement that all other uses or disclosures will only be made with the individual’s authorization • If applicable, a statement that the GHP, or a health insurance issuer or HMO providing benefits for GHP, will disclose PHI to Plan Sponsor

16. Provision of Notice • No later than the Compliance Date for existing participants • At time of enrollment for all new enrollees • Within 60 days of a material change to the notice • Notification of availability of the notice every 3 years (or less) • Requirement satisfied if provided only to named insured and not dependents

17. Health Plan Notice Issues • Notice is from Group Health Plan if there is no group insurance contract • Notice is from the HMO or health insurance issuer in the insured context • Notice maintained by the GHP if it receives PHI • Notice to the named insured is sufficient

18. Other Notice Requirements • Specify GHP/Plan Sponsor duties • Name Contact Person • Establish Complaint Process • Optional ability to impose limitations on allowable uses and disclosures

19. Plan Amendment & Certification • Required elements for Plan amendments • Required elements similar to elements of a BA contract • Certification by GHP to Plan Sponsor

20. Required Amendments • Establish the permitted and required uses and disclosures of PHI by the Plan Sponsor • Not use or disclose PHI other than as permitted or required by the GHP or as required by law • Ensure that agents and subcontractors of the Plan Sponsor agree to abide by the Privacy Rule requirements

21. Required Amendments • Provide an accounting of disclosures of PHI • Make internal practices, books and records pertaining to the use and disclosure of PHI received from the Plan available to DHHS for determining compliance • Return or destroy all PHI when no longer needed

22. Required Amendments • Ensure adequate separation b/w the GHP and Plan Sponsor • Describe employees or classes of employees under the control of the Plan Sponsor to be given access to PHI, including individuals who receive PHI in the ordinary course of business • Provide a mechanism for resolving noncompliance

23. Required Amendments • Plan Sponsor cannot use or disclose PHI for employment-related actions, or in connection with any other benefit or employee benefit plan of the Sponsor • Report to the GHP any inconsistent use or disclosure of which it becomes aware • Make PHI available to individuals and allow individuals to amend their PHI

24. Individual Rights • Receive notice of privacy practices • Access: inspect or copy PHI • Amend • Accounting

25. Individual Rights (cont.) • Authorization • Complaints to Secretary and/or GHP • Permissive right to request restriction and confidential communication

26. Administrative Requirements • Appoint privacy official and contact person • Establish privacy policies and procedures and implementing forms e.g., request for access form • Reconfigure technical, administrative and physical safeguards (i.e., firewalls)

27. Administrative Requirements • Develop authorizations and notices • Develop grievance/complaint procedures • Develop sanction, mitigation, non-retaliation, and non-waiver of rights policies

28. Administrative Requirements • Communicate privacy policy • Training • Written or electronic record of the actions, policies, procedures, and other forms required to be documented by the Privacy Rule (document communications required to be in writing)