THIS DOCUMENT PROVIDES AN OVERVIEW OF THE NEW HIPAA LAW

AND THE RESPONSIBILITIES UNDER THE NEW LAW.

As more and more health information is maintained on computers and transmitted electronically, the risk of tampering and unauthorized access to this information has increased dramatically. Congress recognized that health care information must be protected and passed a law commonly referred to as HIPAA. This new Security Law effective April 21, 2005, requires that the health care industry take measures to safeguard the privacy and security of health information. We are responsible under this new law to protect the privacy of our patients health information.

================================================================

Q; What does HIPAA stand for?

A: Health Insurance Portability and Accountability Act of 1996.

Q: What is the purpose of the HIPAA security rule?

A: Today`s healthcare industry is supported by information systems that contain sensitive health care and financial data. The security rule was created to set national standards for the security of PHI that is maintained or transmitted electronically.

Q: What is the difference between the HIPAA Privacy and the HIPAA Security Rule?

A: The Privacy Rule governs how companies may use and disclose PHI; the Security Rule requires the implementation of measures to protect against unauthorized access, alteration, deletion and transmission of this data.

Q: What is E-PHI?

A: E-PHI is Electronic Protected Health Information. This includes health information in electronic format which relates to an individuals physical or mental health condition; receipt of healthcare services; or payment for healthcare services. Examples of E-PHI include a persons name, social security number or other identifying information; prescription information; a persons medical condition; how much they spend on medication, etc.

Q: I don`t work for your company, do I still have access to E-PHI?

A: The security Rule Impacts everyone, employees, vendors, 3 rd party associates, etc. During the course of your work you may come in contact with E-PHI. If you do, Federal law requires you to keep the information confidential, conceal it from unauthorized persons, store it in a protected area, and properly dispose of it.

Q: What can happen if PHI is not kept confidential.

A: When a violation has occurred there are a number of consequences including criminal penalties of up to 5 years in prison and up to $250,000 in fines.

Q: Why can my information be publicly viewed in a double dippers database:

A: Information that is sent to a central database to be shared between companies is normally phony or untrue information fabricated by a person for the purpose of obtaining medication.