How Does the HIPAA Law Protect Against Identity Theft?

The HIPAA law protects against identity theft by establishing privacy and security rules for healthcare providers and insurers, requiring them to safeguard individuals’ PHI, implement secure electronic transactions, and conduct risk assessments to prevent unauthorized access or disclosure, reducing the risk of PHI being exploited for identity theft purposes.

Addressing Unauthorized PHI Access, Use and Disclosure

One way in which HIPAA guards against identity theft is by mandating that covered entities, which include healthcare providers, health plans, and healthcare clearinghouses, implement administrative, physical, and technical safeguards. These safeguards are designed to prevent unauthorized access, use, or disclosure of PHI and ePHI. Healthcare providers are required to conduct regular risk assessments to identify vulnerabilities in their systems and implement measures to mitigate potential threats.

The HIPAA law sets strict protocols for handling PHI and ePHI. Healthcare providers must limit access to patient information to only those individuals who require it for legitimate purposes. Employees must undergo HIPAA training on compliance, privacy practices, and security measures to ensure they understand their responsibilities and the importance of protecting patient data. HIPAA also mandates that healthcare organizations establish policies and procedures for responding to security incidents and breaches. In the event of a breach, covered entities must notify affected individuals and, in certain cases, the Department of Health and Human Services (HHS) and the media. This transparent approach to data breaches helps individuals take appropriate action to protect themselves against potential identity theft.

Strict Standards for PHI Electronic Transmission

Another aspect of HIPAA’s identity theft prevention efforts is the enforcement of strict standards for electronic transactions. The law requires healthcare entities to use standardized electronic formats when transmitting PHI, such as in health insurance claims, remittance advice, and eligibility inquiries. These standardized formats ensure secure and efficient communication while minimizing the risk of unauthorized access to sensitive data. HIPAA also empowers patients by granting them certain rights over their health information. Patients have the right to access their medical records and request corrections if they identify errors. This enables individuals to stay informed about their health data, making it easier to spot any discrepancies or signs of potential identity theft.

The law’s impact extends beyond healthcare providers and includes their business associates, who also handle PHI on their behalf. HIPAA mandates that covered entities enter into business associate agreements (BAAs) with these partners, outlining the responsibilities and expectations regarding the protection of PHI. This requirement ensures that third-party entities involved in healthcare operations are equally accountable for maintaining patient confidentiality and preventing identity theft.

In recent years, HIPAA has evolved to address the growing use of technology in healthcare. The Health Information Technology for Economic and Clinical Health (HITECH) Act, which was enacted as part of the American Recovery and Reinvestment Act of 2009, introduced additional provisions related to the use of electronic health records. HITECH incentivizes the adoption of EHRs while reinforcing the security requirements for electronic PHI.

Healthcare professionals must understand HIPAA’s role in protecting against identity theft. The law establishes strict privacy and security rules, requiring healthcare entities to implement strong safeguards for PHI and ePHI, conduct risk assessments regularly, and promote transparency in the event of breaches. By adhering to HIPAA’s provisions, healthcare professionals contribute to a secure and trustworthy healthcare system that prioritizes patient privacy and prevents potential threats of identity theft.


About Christine Garcia 1309 Articles
Christine Garcia is the staff writer on Calculated HIPAA. Christine has several years experience in writing about healthcare sector issues with a focus on the compliance and cybersecurity issues. Christine has developed in-depth knowledge of HIPAA regulations. You can contact Christine at [email protected]. You can follow Christine on Twitter at