Top 8 Healthcare Cybersecurity Scares (+ How to Handle Them)
Once the lights are shut off, the doors locked, the exam rooms empty, and the hum of day to day silenced, you may think your practice is quiet and...
7 min read
Robert McDermott May 30, 2024 12:34:00 PM
Even though billing is essential for healthcare practices, it often takes a back burner to patient care and services. However, when it comes to compliance efforts, healthcare billing and claims are subject to strict regulations, including HIPAA, and should not be an afterthought.
If your practice is prioritizing HIPAA compliance, it should also be prioritizing healthcare billing compliance.
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Healthcare billing compliance refers to a healthcare practice or organization’s adherence to various laws, regulations, and guidelines that govern the billing and claims processes within the healthcare industry. This includes ensuring that all billing practices are accurate, truthful, and in accordance with federal and state laws. Compliance, in this context, is crucial for maintaining the integrity of healthcare operations and protecting the financial interests of both providers and patients.
To fully understand healthcare billing compliance, one must also understand the key regulations and standards which play a significant role in shaping healthcare billing compliance.
To start, HIPAA, which focuses on the privacy and security of patient health information, requires healthcare providers to implement stringent measures to safeguard sensitive patient data and to ensure it is only shared appropriately.
HIPAA imposes several regulations on healthcare billing to ensure the privacy, security, and accuracy of patient information. These regulations are primarily aimed at safeguarding PHI/ePHI and ensuring healthcare providers and billing entities mitigate vulnerabilities and adhere to standardized practices. Here’s an overview of HIPAA’s key regulations related to billing:
The HIPAA Privacy Rule sets standards for the protection of PHI, which, in addition to information about health status and care, also includes personal identifiers and payment data for healthcare services.
More specifically, HIPAA’s Privacy Rule requires:
The HIPAA Security Rule requires healthcare providers to implement administrative, physical, and technical safeguards to ensure the confidentiality, integrity, and availability of electronic PHI (ePHI).
In the context of healthcare billing, this includes:
In addition to the Privacy and Security Rules, HIPAA also mandates the use of standardized electronic transactions and code sets for billing to streamline and simplify the healthcare billing process. These standards include:
The False Claims Act (FCA) is another critical regulation, which targets fraudulent billing practices. Under the FCA, submitting false claims to Medicare or Medicaid can result in severe penalties, including hefty fines and imprisonment. Other important regulations include the Stark Law, which prohibits physician self-referrals, and the Anti-Kickback Statute, which forbids exchanging anything of value to induce referrals for services covered by federal healthcare programs.
Effective compliance measures ensure that patient data is handled with the utmost care, reducing the risk of breaches and unauthorized access. Additionally, by adhering to billing guidelines and accurately documenting services provided, healthcare organizations can prevent fraudulent claims and billing errors. This not only helps avoid legal repercussions but also fosters trust and transparency between healthcare providers and their patients.
Ultimately, robust compliance practices are integral to maintaining a trustworthy and efficient healthcare system.
Given the importance of compliance, healthcare organizations must not only understand the regulations, but also have some insight into areas where, most often, there are issues and challenges with staying compliant.
Implementing comprehensive compliance programs, conducting regular training sessions, and utilizing advanced billing software can help mitigate these common issues in healthcare billing.
As with any regulatory non-compliance, oversight and enforcement is handled by the offices responsible for the regulations themselves. Those consequences may be legal or financial, or both, and can have lasting effects. As such, the consequences typically include damages to reputation and business.
To start, HIPAA enforcement is carried out by the Office for Civil Rights (OCR) within the U.S. Department of Health and Human Services (HHS). Non-compliance with HIPAA regulations can result in significant penalties, including fines and legal action. The penalties can vary depending on the level of negligence, ranging from $100 to $50,000 per violation, with an annual maximum of $1.5 million. In addition to penalties, non-compliance can land you on the OCR’s online breach portal, commonly referred to as the “HIPAA Wall of Shame,” making the details about your business and your breach publicly accessible.
Violations of the FCA can result in significant penalties, including fines ranging from $11,665 to $23,331 per false claim (adjusted annually for inflation), plus three times the amount of damages sustained by the government. This makes non-compliance with the FCA very costly for healthcare providers and billing entities.
In short, the consequences can be significant, especially as HIPAA has a breach notification rule requiring that providers report the breach to the following:
Individual notification must occur without unreasonable delay and no later than 60 days following the discovery of the breach. The notification must include:
If a breach affects more than 500 residents of a state or jurisdiction, the covered entity must notify prominent media outlets serving that area. Covered entities must notify the Secretary of Health and Human Services (HHS) at the same time they notify the affected individuals. For breaches involving fewer than 500 individuals, covered entities can maintain a log of the breaches and submit this information annually to the HHS.
Finally, business associates (entities that perform functions or activities on behalf of, or provide certain services to, a covered entity that involve access to PHI) must notify the covered entity of a breach of unsecured PHI.
Essentially, breaches require full visibility and transparency and, as such, the impact extends far beyond the individuals whose accounts and data were impacted.
Given the importance of ensuring healthcare billing compliance, healthcare practices must employ best practices to safeguard patient data, even and especially when it comes to billing. A few strategies practices should implement:
Implementing these best practices can help healthcare organizations maintain compliance with billing regulations, minimize the risk of violations, and ensure accurate and ethical billing practices.
If you’re like most healthcare practices who are taking compliance seriously, you realize it can be a full-time job, requiring not only training, but knowledge, oversight, prevention, and response.
iCoreConnect’s solutions are designed not only to improve healthcare workflows, making your team more efficient, but they’re also designed to ensure compliance and improve the patient experience. Whether you’re looking for payment and billing support from iCorePay, claims and dental billing support from iCoreClaims, or help with coding to ensure compliance with iCoreCodeGenius, we have solutions designed to help.
For a full HIPAA Risk Assessment and assistance with continued compliance, check out iCoreHIPAA.
Book a demo or reach out to our team today and let us help you with compliance so you can focus on patients.
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