Law in the Internet Society

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BrendanMulliganSecondPaper 6 - 25 Mar 2010 - Main.BrendanMulligan
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 The government responded to these concerns with changes to Health Insurance Portability and Accountability Act of 1996 (HIPAA). Any time private health information is “accessed, acquired, or disclosed” by or to an unauthorized person,” the Department of Health and Human must be notified. If the breach affects more than 500 residents of the same state, major media outlets must be notified. This will be enforced by penalties of $50,000 for actions of willful neglect, undefined, but presumably the failure to adopt safeguards required by law.
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Problems of HIPAA-Acceptable Private Health Information Sharing

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Lingering Problems with HIPAA-Acceptable Private Health Information Sharing

 The above change may increase hospital vigilance in protecting medical privacy (e.g.), but it fails to stop the easiest breach of private health information. HIPAA permits patients’ personal health information to be shared among more than 600,000 organizations without patients’ consent. 45 C.F.R. § 164.506 states that with limited exceptions “a covered entity may use or disclose protected health information for treatment, payment, or health care operations as set forth in paragraph (c) of this section.” Health care operations are defined extremely broadly, including activities such as business planning, management and administration, the sale or transfer of a covered entity, fundraising, and data analysis for plan holders or other sponsors. There are almost no discernible restrictions.

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