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ARTICLE · 12 MAY 2009

HITECH Changes HIPAA Privacy And Security Rules For Group Health Plans

A portion of the new economic stimulus bill, called the Health Information Technology for Economic and Clinical Health Act (the “HITECH Act”), will have a significant impact on employers that sponsor group health plans.

United StatesMedia, Telecoms, IT, Entertainment
Jessica Forbes Olson
Jessica Forbes Olson
Mark Kinney
Mark Kinney

A portion of the new economic stimulus bill, called the Health Information Technology for Economic and Clinical Health Act (the "HITECH Act"), will have a significant impact on employers that sponsor group health plans. The HITECH Act effectively mandates that group health plans secure protected health information ("PHI") of plan participants by using a technology or methodology to be specified by guidance later this month. Plan sponsors that fail to bring their group health plans into compliance are at risk for enforcement actions, large penalties, class action lawsuits, and injuries to reputation. By any measure, this is the toughest federal law ever enacted to regulate employee benefit plans.

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