A few weeks ago the long-awaited final omnibus rule that modifies the Health Insurance Portability and Accountability Act (HIPAA) took effect. HHS Office for Civil Rights Director Leon Rodriguez said, “This final omnibus rule marks the most sweeping changes to the HIPAA Privacy and Security Rules since they were first implemented. These changes not only greatly enhance a patient’s privacy rights and protections, but also strengthen the ability of my office to vigorously enforce the HIPAA privacy and security protections, regardless of whether the information is being held by a health plan, a health care provider, or one of their business associates.”
The changes affect HIPAA covered entities, including health care providers, health systems, health plans (including insured and most self-insured employer group health plans) and clearinghouses. HIPAA business associates, including a wide range of vendors who contract with covered entities and access protected health information (PHI) are also now covered. Examples include technology vendors, services organizations, accountable care organizations (ACOs), and third party administrators.
HIPAA covered entities and business associates generally have 6 months – until September 23, 2013 – to become compliant with the Omnibus Rule. This new ruling will force many vendors to transform both their agreements and their compliance practices. Smart vendors will begin adapting now.