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HIPAA

September 20th, 2006 Posted by Amelia

Many employers have questions about HIPAA. The Health Insurance Portability and Accountability Act of 1996 is usually referred to by the acronym of HIPAA. It offers protections for millions of American workers that improve portability and continuity of health insurance coverage.

Unfortunately, in the past, too many employers treated an employee’s confidential medical information as juicy office gossip. An employee’s personal health information, such as being HIV positive or having breast cancer, was often shared with coworkers. HIPPA makes such action by employers or even coworkers illegal. A key feature of the HIPAA law, frequently called the Privacy Act, is a guarantee of privacy regarding medical information.

HIPAA specifically prohibits employers from discriminating against employees based on their medical diagnosis. This means that an employer cannot refuse to hire someone who has been treated for cancer or a heart condition in the past, if they are able to perform the job. HIPAA was enacted because too many employers sought to save money on health insurance premiums by hiring only healthy people.

HR directors and others who are privy to employee’s medical information should regard the diagnosis as highly confidential. Medical and employment records should be kept in a locked file cabinet. Employers should even go as far as trying to put the medical information out of their minds. Philip Cohen, a noted VP of Human Resources in Florida, goes even further. “Once the benefits question has been addressed, employers need to forget any confidential medical information that they learned.”

Under the HIPAA law, employers need to treat any medical information they may encounter on employees as confidential. Often employers learn of an employee’s medical diagnosis when acting as a liaison with the health insurance provider. At other times, an employee will share a diagnosis with an employer to explain why he or she is taking time off work.