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HIPAA Insight: Regulation of Sensitive Medicaland Health Information

By D. Reed Freeman Jr. and Alysa N. Zeltzer
August 23, 2003

On April 14, the privacy provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) went into effect, requiring compliance from 'health plans,' 'health care clearinghouses' and most 'health care providers' (collectively, covered entities).

The Act includes some flexibility for small plans to reach compliance. For instance, the April 14 deadline applied to all health plans with more than $5 million in annual premiums; plans with $5 million in annual premiums or less must comply by April 14, 2004.

Such entities must comply with HIPAA's standards for electronic health care transactions ' unless the entity received an extension ' and adhere to the Act's privacy rule.

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