New HIPAA Rule May Extend to Your Business

There has been a lot of talk in the media and even Congressional hearings on whether or not the source code powering the Obamacare  federal website violates HIPAA privacy protections on medical records and personal health information.

But this chatter yet again fails to help small business owners understand some very important changes about how HIPAA now affects them. Don’t be mistaken—HIPAA doesn’t just apply to doctor’s offices and insurance companies. If you are a contractor or subcontractor doing business with health care entities, you could be directly liable for violations to privacy and security.

Liability now extends to ‘business associates’ that create, receive, maintain or transmit protected health information (PHI) on behalf of business associates.  That means everyone from attorneys to IT consultants can be fined anywhere from $100 up to $50,000 per violation. The Albany Business Review warns, “The federal government is expanding audits, seeking to get to the point where fines levied will pay for enforcement.”

More information about HIPAA , including the rule change, is available at the Health and Human Services website.



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About Mike Durant

Mike Durant was named New York State Director of NFIB in May 2011. Prior to joining NFIB as the Assistant State Director in May 2010, Durant began his career in the New York Senate working in the Office of Member Services. From there, he served in a number of positions during former New York Governor George E. Pataki’s administration. As a Research Specialist in the New York State Office of Demographic Policy, Mike was responsible for drafting a redistricting proposal for Governor Pataki. In addition, Mike served as a Research Specialist for the Empire State Development Corporation, as well as the Associate Commissioner of Human Resource Management with the New York Department of Labor. Durant also spent four years working at the Questar III BOCES as a specialist focusing on the complex formulas that drive aid to school districts across the state while also taking a lead role in the state legislative/budget process as it related to education policy. These past positions have given Mike a deep understanding of the complex political economics of the State of New York. Active in the community, Durant has served on a number of boards in both the village of Ballston Spa and Town of Milton. Durant received his bachelor’s degree from Siena College in Loudonville, New York and resides in Ballston Spa with his wife and two children.
This entry was posted in Legal, New York, Regulations, Small Business, Uncategorized. Bookmark the permalink.

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