HIPAA UPDATE

January 9, 2004

By Jeffrey A. Schwartz

As of April 14, 2004, more employers will fall under the privacy requirements contained in Health Insurance Portability and Accountability Act of 1996 (HIPAA).

Previously, sponsors of health plans with less than $5 million per year in either total health care premiums or benefits paid out were given an extension from the April 14, 2003 deadline that applied to larger plans. Compliance is now mandated by April 14, 2004.

The HIPAA regulations contain two exceptions. The first exception applies to employers with a group health plan that has less than fifty participants and which is administered by the employer. The second exception exists for plans that are fully insured and protected health information is not sent to the employer. This exception is not complete like the first one but the compliance obligations are not significant.

For those who have not instituted HIPAA compliance as a result of the extension granted last year, now is the time to evaluate your need and/or program to ensure HIPAA compliance. If you have questions or want further assistance, please contact authors.

Jeffrey A. Schwartz is a shareholder in the Firm's Labor and Employment Practice Group and resides in the Firm's New Orleans office. He may be contacted at (504) 522-8788 or jschwartz@watkinsludlam.com.