HIPAA Privacy Execption

Sankey

We are a small, private college of approximately 250 full- and part-time employees with a self-insured health plan that pays out far less than $5 million annually in claims. We provide the 125 plan option. For some time now, from many different sources, I have been comfortingly informed that we are not obligated to meet the the new HIPAA privacy standards until April 2004. However, today I read in (what I consider to be a very reliable) employment-law publication that if "...your group health plan is fully insured...(and) you have at least 50 employees, and...you administer a Section 125 Flexible Spending Account option...you just became a covered entity".

My question: Because we administer a 125 plan does this now cause us to have to meet the April 2003 compliance date?

Thank you for whatever helpful information and guidance you can provide in this matter.

LindaS

The covered entity portion simply means that you have to comply with the privacy regulations. Small employers, ones with less than $5 million annually in claims have until next year (April 2004) to come into compliance.

njjel

This is true but why wait? Get working on it now.

LindaS

I agree about not waiting and am working on it right now. I think the initial question was whether or not Sandkey had reason to be in a panic about not being ready this April.