Presented by Jack Kolk President ACR 2 Solutions, Inc.

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1 HIPAA 102 : What you don t know about the new changes in the law can hurt you! Presented by Jack Kolk President ACR 2 Solutions, Inc.

2 Todays Agenda: 1) Jack Kolk, CEO of ACR 2 Solutions a information security and privacy compliance software and consulting company 2) Overview of the changes in the Omnibus law 3) Historical examples of fines and enforcement 5) Questions and answers please bear with us

3 The Omnibus Rule and What has changed! HITEC Major Changes to HIPAA Privacy and Security Rules: Business Associates and Subcontractors liability Wellpoint $1.7 Million fine and Sutter Health 11 class-action lawsuits Breach Notification Letter to a doctor after reporting a breach Affinity Health Plan s Photocopier Settlement will be handled differently Willful Neglect Penalties Up to $1.5 Million Private Right to Sue Notices to a BA s and Practices regarding use of data July 2013 Privacy violation $1.44M Walgreen And More Cardiac Phoenix Healthcare $100 K and the: 3/3 failure to obtain reasonable assurance NSF media and 2 Doctors for posting Pictures of a rhinoplasty

4 Getting to know you. 1. Who here works for a company that has Eligible Practitioners for the EHR Stimulus program? 2. Have Security Awareness trainings for all employees? 3. Has any one here read the Omnibus rule? 4. Has anyone ever been asked for a Business Associate Agreement 5. Do you or your company require your contractors for a Business Associate agreement?

5 Why did I call it HIPAA 102? Hint: (I assuming that you are familiar with ) Health Insurance Portability and Accountability Act of HIPAA 1a - Privacy Rule in place since HIPAA 1b - Security Rule in place since 2005 HIPAA 101 was adopted to address the implementation provisions of HIPAA - HITECH Act 2010 HIPAA 102 Meaningful Use Changes to the law - Omnibus Rule and beyond

6 There 2 Major Parts to HIPAA HIPAA Security Rule covers several areas: Rules regarding health coverage qualification Rules regarding data interchange Regulations protecting security of ephi HIPAA Privacy Rule focuses on : Privacy of Protected Health Information (PHI )

7 Acronyms and Abbreviations 1) Health Information Technology for Economic and Clinical Health Act - the HITECH Act 2) HIPAA Privacy Rule - HIPAA Security Rule 3) ONC the Office of the National Coordinator for Healthcare 4) OIG Office of the Inspector General 5) PHI Protected Health Information 6) ephi electronic Protected Health Information 7) BA - Business Associate 8) CE Covered Entity 9) Breach Notification, 10) Reasonable Assurance, Justifiable Assurance 11) Willful Neglect and/or Reasonable diligence 12) FTC Federal Trade Commission

8 PHI what is it?, what isn t it? HIPAA PHI: List of 18 Identifiers 1. Names; 2. All geographical subdivisions smaller than a State, including street address, city, county, precinct, zip code 3. All elements of dates (except year) for dates directly related to an individual, including birth date, admission date, discharge date, date of death; etc. 4. Phone numbers; 5. Fax numbers; 6. Electronic mail addresses; 7. Social Security numbers; 8. Medical record numbers; 9. Health plan beneficiary numbers; 10. Account numbers; 11. Certificate/license numbers; 12. Vehicle identifiers and serial numbers, including license plate numbers; 13. Device identifiers and serial numbers; 14. Web Universal Resource Locators (URLs); 15. Internet Protocol (IP) address numbers; 16. Biometric identifiers, including finger and voice prints; 17. Full face photographic images and any comparable images; and 18. Any other unique identifying number, characteristic, or..

9 HIPAA Omnibus Rule Summary of Major Provisions This omnibus final rule is comprised of the following four final rules: 1. Final modifications to the HIPAA Privacy and Security and Enforcement Rules mandated by HITECH 1. Make business associates (BA s) of Covered Entities directly liable for compliance with certain of the HIPAA requirements. 2. Strengthen the limitations on the use and disclosure of PHI for marketing and fundraising and resale of PHI 3. Expand individual right of ownership and disclosure

10 HIPAA Omnibus Rule Summary of Major Provisions This omnibus final rule is comprised of the following four final rules: 1. Final modifications HIPAA Privacy and Security and Enforcement Rules mandated by HITECH ( continued) 4. Require modifications to, and redistribution of, a covered entity s notice of privacy practices. 5. Modify the individual authorization and other requirements to facilitate research and disclosure of child immunization proof.. 6. Adopt additional HITECH Act enhancements to the Enforcement Rule.. Such as the enforcement of noncompliance with the HIPAA Rules due to willful neglect.

11 HIPAA Omnibus Rule Summary of Major Provisions This omnibus final rule is comprised of the following four final rules: 2. Final rule adopting changes to the HIPAA Enforcement Rule to incorporate the increased and tiered civil money penalty structure.. 3. Final rule on Breach Notification for Unsecured Protected Health Information under the HITECH Act, which replaces the breach notification rule s harm threshold with a more measurable standard. 4. Final rule modifying the HIPAA Privacy Rule as required by the Genetic Information Nondiscrimination Act (GINA) to prohibit most health plans from using or disclosing genetic information..

12 Important Dates are here now! 1. Rules went into effect March 26, Compliance Deadline Sept 23th, 2013 for HIPAA Privacy and Security 3. BA Agreements, updated and renewal 1. Compliant BA Agreements in place by Sept Auto-renewing Agreements updated at time of renewal 3. Full BA Agreements updated by no later than Sept 2014

13 Penalties and Fines What has Changed?? How could it affect me?

14 Risk Assessment puts you firmly on the path to Reasonable Diligence for HIPAA Security and MU

15 New Definition of a Breach (2) Except as provided in paragraph (1) of this definition, an acquisition, access, use, or disclosure of protected health information in a manner not permitted under subpart E is presumed to be a breach unless the covered entity or business associate, as applicable, demonstrates that there is a low probability that the protected health information has been compromised based on a risk assessment of at least the following factors: (i) The nature and extent of the protected health information involved, including the types of identifiers and the likelihood of re-identification; (ii) The unauthorized person who used the protected health information or to whom the disclosure was made; (iii) Whether the protected health information was actually acquired or viewed; and (iv) The extent to which the risk to the protected health information has been mitigated.

16 Recent fines for Breach Affinity Health Plan - $1.2M for photocopier > 344K records on copier drive, but units returned, some unknown Goldthwait Assoc. and 4 clients $140,000 - Improper disposal of paper records Anthem Blue Cross Fined $150,000 for 34K letters - Printed with some SS# s viewable through the envelope window. Oct Alaska Medicaid pays HHS $1.7M - USB drive stolen, no policies, no training, etc..

17 New HIPAA Privacy and Security Rules for Covered Entities and Their Business Associates Federal Register at Vol. 78, No. 17, Friday January 23, 2013, starting at page Major Changes from 2003 HIPAA Regulations 1. New definition of Business Associate covers any person or organization that creates, receives, maintains or transmits protected health information (page 5688) 2. Business Associates are directly responsible for HIPAA privacy and security compliance (page 5589). 3. HIPAA non-compliance by Business Associates can create up to $1.5 million in liability for Covered Entities (page 5691).

18

19 2 nd Section continued

20 Omnibus Law effective as of Mar What are BA s required to do?

21 Business Associates and Security Breach Notification 1) Subcontractor any person to whom a BA delegates a function, activity or service, other than a member of BA s workforce 2) Subcontractor is a BA if they create, receive, maintain or transmit PHI on behalf of a business associate 3) Status of a business associate flows down the chain of custody of ephi

22 Business Associates Agreement per the AMA Agreement 1) Reasonable Assurance is driving new BA agreements 2) AMA Business Associate Agreement Sample Notice - Section Implement Information Security Program. Upon request, Contractor shall make available Contractor s security program, including the most recent electronic Protected Health Information risk analysis, policies, procedures, security incidents and responses and evidence of training. 3) Subcontractors of BA s must do the same!

23 Liability of Covered Entities and Business Associates for Violations by Their Business Associates and Sub-Contractors

24 Cost of a Breach 2012 Lesson Learned: Don t call it a Breach, call it an incident or an event, until you do your assessment. Document your reasons for not reporting it as a breach Transition to encryption of data at rest. It s the easiest thing you can do to mitigate the risk!

25 The Audits are here!

26 HIPAA Compliance Vs. Security Compliance involves meeting the standard of care by whatever regulatory authority overseeing them. OCR is the enforcer and HIPAA is the standard. Security is keeping unauthorized persons away from accessing, corrupting or destroying sensitive data. HIPAA does not require that you be perfectly secure. Your Organization (CE s and BA s and their subcontractors) are required to be compliant with the law! ACR 2 Solutions, Inc. 26

27 HHS Audits 2013 Results- OCR

28 Leon Rodriguez Director of the OCR Sept 23, 2013

29 Meaningful Use Audit Determination Letter Your practice has not met the meaningful use requirement! (Once they received this, they have signed up with us!)

30 Audit Determination Letter expanded

31 Incentive Payments are being recouped the total payment!

32 Letter to practice after reporting a Breach

33 Letter to practice after reporting a Breach pg2

34 Letter to practice after reporting a Breach pg. 3

35 Resolution Agreement Fined $100K and references 3 items. 1 was Reasonable Assurance

36

37 Jail time in a federal prison for a misdemeanor HIPAA offense and fined! Last year, a former UCLA Health System employee became the first person in the United States to receive jail time in a federal prison for a misdemeanor HIPAA offense. The employee used his employee access to the University s electronic medical records system to view the medical records of his supervisors, co-workers, and high-profile patients. While none of the information was used or sold, the access was nonetheless illegal because the employee lacked a valid reason for looking at the records. The ex-employee pled guilty to four misdemeanor counts of violating HIPAA. His sentence was four months in prison and a $2,000 fine.

38 $140 K for paper disposal

39

40 HIPAA Audits

41 Anthem Blue Cross/Blue Shield $150K

42 OCR fines

43 Security Issues

44 Risk Assessments Again!

45

46 Summary of Key Points 1. You may be a CE or a BA! 2. HIPAA is Not an Option 3. Big $$ Fines and Enforcement is Here Now 4. 5 to 10% of Attesting Providers will be audited 5. Doing a Risk Assessment helps to limit your liability 6. Your Business Associates Need to be compliant 7. Deadline for BA Compliance is Sept 23, 2013

47 Remember that it s now real liability Up to $1.5 million per violation! Thank you! Contact: Jack Kolk

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