Individuals value privacy because it enables them to retain their liberty and develop their uniqueness. Physical privacy enables individuals to behave and express themselves anonymously or with a select number of others without fear of public condemnation or humiliation. For example, when parents are not looking, a young kid may dance or engage with imaginary companions but may feel self-conscious and cease such display when adults become aware. Similarly, a grown person may behave freely among friends or express sexual urges with a partner in ways that she or he would not do in public. Additionally, information privacy is critical because individuals identify themselves via their ability to manage information about themselves. A free society allows individuals to decide what information discloses and what information is kept private.
Confidentiality and privacy and the need to maintain the confidentiality of information are equally critical for practical, repercussion reasons. The right to secrecy and the corresponding obligation permits the exchange of information within a defined area. The individual who distributes the knowledge first may reap the benefits of this restricted sharing without risking information privacy.
Who Is Required to Obey These Regulations?
The entities that are required to comply with HIPAA rules as “covered entities.” Entities that fall under this category include:
Various types of insurance companies, HMOs, corporate health plans, and some government programs that pay for medical care, including Medicare and Medicaid, are all examples of health plans.
The vast majority of healthcare providers—those that do specific business online, such as electronically invoicing the health insurance—include the vast majority of physicians, clinics, hospitals, psychiatrists, chiropractic, nursing homes, pharmacists, and dentists, to name a few examples.
Organizations that convert nonstandard health data they collect from another organization into a standard (e.g., a electronic form or metadata), or vice versa, are known as health care clearinghouses.
In addition, business partners of covered organizations require to comply with some aspects of the HIPAA rules.
Contractors and outside individuals and businesses who are not employees of a covered organization may often need exposure to the health information to provide services to the covered entity, which is known as “outsourcing.” These entities are “business associates.” Business associates include, for example, the following:
Billing firms and companies that handle the national healthcare claims are examples of businesses that assist the physicians in being reimbursed for delivering health care services.
Companies that assist in the administration of health insurance policies.
Individuals such as outside attorneys, accountants, and information technology experts.
Healthcare organizations that keep or delete medical records.
In order to protect the patient data, covered entities must have deals in place with their business relationships that ensure that they use and disclose the health information properly. Contracts with subcontractors must be in the same format as those with business partners. The use and disclosure terms of their contracts, business associates (particularly subcontractors) must also adhere to the safeguard requirements of the Federal Information security management act.
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