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The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is a sweeping set of
federal legislation and regulations created to improve the portability of an individual's
healthcare coverage when changing jobs, to promote administrative simplification of health
insurance, and to promote the privacy and security of patient information.
Healthcare providers, group health plans, managed care providers, and professional services
companies all need to be HIPAA compliant.
Health Care Providers, and large qualifying organizations were mandated to be compliant in
April 2003. Any employer that offers a Health Insurance Plan, or self-funds an insurance plan
via a Health Reimbursement Arrangement (Section 105), or offers Cafeteria Plan benefits
(Section 125) to employees must become HIPAA compliant by April 2004.
The HIPAA Rule outlines approximately 80 requirements. An employer offering any of the above
benefits (unlike a HealthCare Provider) is only subject to approximately 35 of the Privacy and
Security requirements. PayCom can work with you to determine the course of action you need to
take to ensure compliance with the requirements mandatory for your specific organization.
The laws are complex and difficult to understand. Let us help you efficiently and effectively
develop, complete and implement a compliance plan. Please contact us if you are
interested in learning more.
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