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1 1 (April 24, 2003)

handle is hein.crs/crsaidz0001 and id is 1 raw text is: Order Code RS21505
April 24, 2003
CRS Report for Congress
Received through the CRS Web
Compliance with the HIPAA
Medical Privacy Rule
Gina Marie Stevens
Legislative Attorney
American Law Division
Summary
As of April 14, 2003, most health care providers (including doctors and hospitals)
and health plans are required to comply with the new Privacy Rule mandated by the
Health Insurance Portability and Accountability Act of 1996 (HIPAA), and must
comply with national standards to protect individually identifiable health information.
The HIPAA Privacy Rule creates a federal floor of privacy protections for individually
identifiable health information; establishes a set of basic consumer protections; institutes
a series of regulatory permissions for uses and disclosures of protected health
information; permits any person to file an administrative complaint for violations; and
authorizes the imposition of civil or criminal penalties. In hearings prior to the effective
date of the Rule, there was widespread concern over aspects of the rule, including the
extent to which it preempted state laws. On April 17, 2003, HHS published an interim
final rule establishing the rules of procedure for investigations and the imposition of
civil money penalties concerning violations. This interim final rule will be effective
May 19, 2003 through September 16, 2003. HHS plans to issue a complete
Enforcement Rule with both procedural and substantive provisions after notice-and-
comment rulemaking. This report will be updated.
Background. In order to improve portability and continuity of health insurance
coverage in the group and individual markets,1 Congress enacted the Health Insurance
Portability and Accountability Act of 1996 (HIPAA) on August 21, 1996, P. L. 104-191,
110 Stat. 1936, 42 U.S.C. §§ 1320d et seq. Subtitle F of Title II of HIPAA is entitled
Administrative Simplification, and states that the purpose of the subtitle is to improve
health care by encouraging the development of a health information system through the
establishment of standards and requirements for the electronic transmission of certain
health information.2 Sections 261 through 264 of HIPAA contain the administrative
1 H.R. Rep. No. 104-496, at 1, 66-67, reprinted in 1996 U.S.C.C.A.N. 1865, 1865-66.
2 110 Stat. 2021.
Congressional Research Service **** The Library of Congress

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