Sept. 23 deadline for health-care data breach, ID theft risk notification rules
Monday, September 21st, 2009
Health care related businesses have only two more days to prepare a data breach notification plan. A new rule requiring that health care providers, insurers and clearinghouses must notify individuals whose information has been inappropriately accessed goes into effect September 23.
Additionally, the data breach notification rule applies to any business associates of any entity covered by HIPAA.
The notification is to be made “as soon as reasonably possible,” but in most cases within 60 days of discovery. An exception to this provision is made if law enforcement requests a delay, a common occurrence when an investigation is ongoing, particularly if the breach appears to affect a large number of people or is part of a larger scam.
However, even if notification takes place within 60 days, but the Department of Health and Human Services (HHS) could determine the covered entity failed to meat the provision if notification could have been made sooner.
If the breach involves 500 or more people, HHS and the media have to be notified. All other smaller breaches should be reported annually.
Another exception to the rule is encrypted or destroyed information. If a hacker breaks into a server or database that the health care entity has taken measures to adequately protect, the entity is off the hook and doesn’t have to make any notification.
Data breach is defined as “the acquisition, access, use or disclosure of protected health information in a manner not permitted (by the HIPAA Privacy Rule) that compromises the security or privacy of the protected health information” or that means a “significant risk of financial, reputational or other harm to the individual.”
The rule is part of an alphabet soup of new legislation. It applies to any entity covered by the Health Insurance Portability and Accountability Act (HIPAA), and is part of the new Health Information Technology for Economic and Clinical Health (HITECH) Act, which is part of the American Recovery and Reinvestment Act of 2009 (ARRA).

