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July 2001 News Archives:

July 31, 2001 AAPS Files Lawsuit in Attempt to Stop HIPAA Privacy Regs The Association of American Physicians and Surgeons (AAPS) announced details of a new lawsuit to be filed to halt implementation of the HIPAA privacy regulations. Also to be released are the results of a national survey of physicians showing almost unanimous opposition to the new rules. Read more.

July 30, 2001 DHHS Reaffirms Plans on Security and E-Signatures Rules
Senior DHHS Advisor on Health Information Policy Bill Braithwaite reaffirmed Friday that the final Security Rule is unlikely to differ substantially from the proposed Security Rule provisions: "The basic philosophy of the final security rule is unchanged from the NPRM." Braithwaite noted that "redundancies and excessive micromanagement have been reduced." He also commented that the electronic signature standard would not be included in the final Security, but "will be addressed later (a year or so) in another rule." Braithwaite forwarded this report to Phoenix Health Systems in response to an inquiry regarding the current status of the final Security Rule. The proposed Security Rule, including a proposed Electronic Signature Standard, was published by DHHS in August, 1998.

July 30, 2001 AFEHCT Issues Report Assessing the Case for HIPAA Delay
The Association For Electronic Health Care Transactions (AFEHCT) has issued a report written by The Moran Company entitled "Implementing the Administrative Simplification Requirements of HIPAA: Assessing the Case for Delay." The report, which AFEHCT is using in its lobbying efforts, reviews the history and rationales behind the enactment of the ‘administrative simplification’ provisions of HIPAA, discusses the newly identified direct and collateral benefits of standardization, reviews the technical feasibility of implementing the administrative simplification standards, and assesses the arguments “for” and “against” the “delay” in the implementation of the “administrative simplification” standards.

July 30, 2001 Blues Exert Pressure on Congress for HIPAA Delay
There are signs of Congressional movement on the Blues' HIPAA "delay" proposals. According to AFEHCT, the Blues are exerting pressure for Congressional action before the August Congressional recess which begins August 3. Action, if any, will take place first in the Senate. Read more.

July 24, 2001 U.S. Looks to Web To Boost Healthcare Customer Service
Sen. Ron Wyden (D-OR), chair of the Science, Technology, and Space Subcommittee of the Senate Commerce Committee, has issued a call for increased use of Internet and e-commerce tools to improve customer service in America's healthcare industry. On Monday, the subcommittee held a hearing titled "E-Health and Consumer Empowerment: How Consumers Can Use Technology Today and in the Future to Improve Their Health." According to witnesses at the hearing, there is a need for hospitals and physicians to share Web-based patient data. Full Story.

July 23, 2001 Bush Calls for Computer Security Board
The White House is setting up a panel to determine the best way to fend off attacks on government systems and protect "critical" private-sector computer networks. The effort is outlined in the final draft of an executive order, called "Infrastructure Protection in the Information Age," which President Bush is expected to sign and issue within two weeks. Full Story.

July 23, 2001 Medicare Prepares for HIPAA Testing
According to Health Data Management, the Centers for Medicare and Medicaid Services, formerly HCFA, has sent a memorandum to Medicare carriers and intermediaries outlining testing requirements in compliance with the HIPAA transactions and code sets final rule. The memorandum, titled Transmittal AB-01-96, contains valuable information for hospitals and other provider organizations that want to get an early start on testing with their Medicare contractor. Read the memorandum (PDF).

July 20, 2001 Lawmakers Urge HIPAA Fix
The American Hospital Association reports that earlier this week a bipartisan group of 15 senators wrote DHHS Secretary Tommy Thompson, urging the administration to fix and help fund HIPAA's medical privacy rule. The Senate letter followed last week's identical call for changes from 165 representatives.
Read more.

July 18, 2001 Gartner Recommends One-Year Delay for Transactions
A recent Gartner, Inc. study revealed that 85 percent of healthcare providers have yet to complete assessments or gap analyses, which are the critical path and foundation to achieve compliance with the HIPAA transaction regulations. Due to those and other findings, Gartner recommends that the deadline be extended one year, to October 16, 2003, allowing healthcare organizations more time to implement standardized EDI transactions. Read more.

July 17, 2001 Scully, Congressional Staffers Speak on HIPAA "Delay"
At the Association For Electronic Health Care Transactions' (AFEHCT) recent Annual Washington Policy Forum, Tom Scully, new CMS (formerly HCFA) Administrator, spoke about HIPAA "delay" proposals. It is the only time the Bush administration has spoken in public and on the record on the subject. Three Congressional staffers very close to the situation also addressed the subject of HIPAA delay. Read more.

July 17, 2001 S.C. Group Files Landmark Lawsuit Over HIPAA
According to the Charlotte Observer, the South Carolina Medical Association (SCMA) has asked a federal district court in Columbia to overturn new rules that mandate how patient information is kept and disseminated. The SCMA says the rules are unconstitutional because they were drawn up by a federal agency, not Congress. An HHS spokeswoman said the department hasn't been sued over HIPAA rules before. Read the complaint (PDF file).

July 16, 2001 DHHS to Retract NDCs as Standard
The modification follows a recommendation from the National Committee on Vital and Health Statistics (NCVHS) to retract the adoption of National Drug Codes (NDCs) as the standard medical data code set for reporting drugs and biologics for certain standard transactions. Full Story.

July 12, 2001 Lawmakers Debate Genetic Discrimination Measure
All the potential benefits of the mapping of the human genome could be at risk if Congress fails to pass a law to protect Americans from insurance and employment discrimination based on their genetic makeup, witnesses told a House subcommittee Wednesday. Reps. Louise Slaughter (D-NY) and Connie Morella (R-MD) told the Energy and Commerce Subcommittee on Consumer Protection that the House should pass their bill which would build on existing
protections included in HIPAA. Full Story.

July 12, 2001 Senators Press for Internet Privacy Bill
Senators pressing for an Internet privacy law say they have learned from their mistakes in previous failed bills, including not specifying whether medical and financial data should get more protection. Several members of the Commerce Committee said Wednesday they were committed to producing a law this year. The legislation they envision may require that consumers give their consent before companies use their medical or financial information, but have a lesser "opt-out" standard for regular Internet purchases. AP article. Washington Post article.

July 10, 2001 AHA Reacts to Privacy Guidance
The AHA welcomed DHHS' issuance of its first HIPAA privacy regs guidance, but said critical issues still need to be addressed. The association said DHHS appears to have taken steps toward assisting hospitals in such key areas as minimum necessary standards, oral communications and consent requirements. However, AHA said the guidance does not address concerns on issues such as data aggregation for benchmarking, business associate requirements, and disclosures to the government. Full Story.

July 6, 2001 DHHS Issues HIPAA Privacy Guidance, calling it "the first in a series of guidance materials" on HIPAA. The guidance addresses many key issues of concern reflected in the more than 11,000 separate public comments on the final rule submitted to HHS during a 30-day comment period this March. Topics include consent, the "minimum necessary" requirement, oral communications and research among others. The guidance also states that DHHS "can and will issue proposed modifications" to the rule prior to the compliance date. Full Story. Read the guidance.

July 6, 2001 Privacy at Issue in Abortion Case; Abortion Patient's Picture, Medical Records Posted on Web
An Illinois woman who suffered a cervical tear during an abortion is suing antiabortion activists for posting her picture, medical records, and personal information on several antiabortion web sites, the Los Angeles Times reports. The woman is also suing the hospital that treated her after the abortion, claiming that her medical records were released without her authorization. Full Story.

July 5, 2001 Eli Lilly Cites Programming Error for Privacy Gaffe
The pharmaceutical maker blames a programming error for an incident last week in which it accidentally disclosed the e-mail addresses of about 600 medical patients. Analysts said the mistake points to the need for health care organizations to assess whether the way they communicate with patients violates
HIPAA medical data privacy rules. Full Story.
UPDATE: ACLU Calls for FTC Investigation for possible federal trade law violation by Eli Lilly. Full Story.

July 5, 2001 NCVHS sends HIPAA recommendations to HHS
The National Committee on Vital and Health Statistics (NCVHS) has recommended to HHS Secretary Thompson a number of steps to help hospitals implement the HIPAA administrative simplification provisions. NCVHS recommended that HHS supply early guidance on implementation of the standards, allow flexibility in enforcing them and should not allow a delay in the implementation date. NCVHS Chairman John Lumpkin, M.D., and director, Illinois Department of Public Health, delivered these agreements and recommendations, along with others, in a letter to Thompson. Read the letter.

July 4, 2001 Prozac Maker Reveals Patient E-Mail Addresses
According to the Washington Post, Drugmaker Eli Lilly and Co. last week inadvertently divulged the e-mail addresses of patients with depression, bulimia or obsessive-compulsive disorder, company officials said yesterday. Privacy specialists said the lapse demonstrates the difficulties of protecting sensitive information collected and shared by computers on the Internet. Full Story.

July 3, 2001 HHS: Privacy Guidance Coming Soon
Robinsue Frohboese, acting director of DHHS' Office of Civil Rights, on June 29 said the privacy guidance document would be released “in the very near future,” according to Health Data Management. HHS officials three weeks ago told the American Hospital Association the document would be issued within days. Frohboese on Friday told AHA News the document will offer detailed guidance on the intent of contentious issues in the medical privacy rule. The Office of Civil Rights, which will enforce the privacy rule, will focus on voluntary compliance and assistance, using enforcement tools only as a last resort, Frohboese told AHA News.

July 3, 2001 Medical Privacy is the Law in Texas
Health Data Management reports Texas Gov. Rick Perry has signed legislation establishing medical information privacy rights in the state. Senate Bill 11 (SB11), modeled after the federal privacy rule, includes tougher restrictions against the use of identifiable information for marketing purposes. The legislation gives patients the right to access and append their medical records, and the right to know how an entity is using their medical information. Read the final bill.

July 2, 2001 Senate Passes Patients' Rights Bill
Democrats pushed through a set of protections for Americans in managed-care plans. But confronted with rampant consumer resentment of managed care, the private marketplace has reacted more rapidly than the government. According to the Washington Post, managed-care officials say state laws--and the specter of federal regulation--have not been the main reason they have changed their rules; the motivation was due to consumers' wants. Read more.


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