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1 (January 30, 2015)

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, Congressional Research Service
       lnforrming the Iegislative debate since 1914


                                                                                                   January 30, 2015

Cyber Laws: Healthcare Information Technology (HIT)


The federal government has undertaken several initiatives
to promote healthcare information technology (HIT), which
involves the exchange of health information in an electronic
environment. Many are increasingly concerned about the
protection of healthcare information and technology from
cyberattacks.

Some 94 percent of medical institutions said their organizations
have been victims of a cyber attack, according to the Ponemon
Institute. Now, with the push to digitize all health care records,
the emergence of HealthCare.gov and an outpouring of
electronic protected health information (ePHI) being exchanged
online, even more attack surfaces are being exposed in the health
care field. SANS Institute, SANS Health Care Cyberthreat
Report 2, Feb. 2014.

Forbes Magazine, http://www.forbes.com/sites/darnunro/
2014/12/2 1/the-top-u-s-healthcare-story-for-20 14-
cybersecurity/, selected cybersecurity as the top U.S.
healthcare story for 2014 because of:
*  The SANS healthcare cyberthreat report, which
   characterized the data as alarming, confirmed the
   industry's vulnerability, and revealed that the industry
   was far behind in cybersecurity.
*  The FBI Private Industry Notification (PIN) to the
   healthcare industry, which warned healthcare providers
   that their cybersecurity systems are lax compared with
   other sectors.
*  The breach of 4.5 million health records at Community
   Health Systems-the second largest U.S. hospital chain.
*  The Sony Pictures breach-which included detailed
   employee, spouse and dependent medical information.
Figure I. Categories in Healthcare Compromised
                     Health care clearinghouses, 0.5%
                   i Pharmaceutica ,2.9%
                        H-lea Ith plans, 6.1%

                            Other related health care
                            ties, 8.5%


Source: CRS prepared chart. Data from SANS Institute, SANS
Health Care Cyberthreat Report, Feb. 2014, http://pages.norse-
corp.com/rs/norse/images/Norse-SANS-Healthcare-Cyberth reat-
Report2OI4.pdf.


Laws to Promote HIT

What began in 1996 with Congress's passage of the Health
Insurance Portability and Accountability Act (HIPAA) to
facilitate the development of a health information system.
This was followed in 2004 by President Bush's initiative to
make electronic health records (EHRs) available to most
Americans within 10 years and the signing of the American
Recovery and Reinvestment Act of 2009 (ARRA) by
President Obama, which authorized $22 billion for HIT
efforts. Included in ARRA is the Health Information
Technology for Economic and Clinical Health Act
(HITECH Act), which promotes health information
technology through codification of the role of the Office of
the National Coordinator for Health Information
Technology (ONCHIT); adoption of standards for health
information technology; creation of grants and loan
programs to promote wider HIT use among health care
practitioners; and expansion of privacy and security
requirements for protected health information. The
HITECH Act also includes financial incentives for
Medicare and Medicaid health care providers who make
meaningful use of electronic health records.

HeaIthCare.gov: Privacy and Security

HealthCare.gov was created by the Patient Protection and
Affordable Care Act (ACA; P.L. 111-148, as amended) to
help individuals purchase health insurance. HealthCare.gov
is the federal Data Services Hub, which collects
voluntarily submitted, personally identifiable information
(PII) from consumers; routes the applicant's PII to federal
agencies for verification; and shares the PII with the state
Exchanges, health plans, and state and local agencies for
enrollment. The Hub connects to existing federal and state
databases, using computer matching programs, to verify
identity, citizenship, income, family size, immigration
status, incarceration, and minimum essential coverage.

The ACA Privacy and Security Rule provides that, where
the Exchange creates or collects PII for eligibility
determinations, the Exchange may only use or disclose such
PII to the extent necessary to carry out an Exchange
function. An Exchange is not permitted to create, collect, or
disclose PII for authorized functions unless the creation,
collection, use, or disclosure is consistent with ACA's
privacy and security standard. Other privacy and security
laws and regulations applicable to HealthCare.gov provide
as follows:
*  The Privacy Act governs the means by which federal
   agencies and their contractors collect, maintain, use, and
   disclose PI in a system of records. 5 U.S.C. § 552a.
*  The Health Insurance Exchanges (HIX) system of
   records notice (SORN) regulates the collection, creation,


www.crs.gov  7-5700


-Health care business
associates, 9.9%

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