Section 130301 Of Division 110. The Health Insurance Portability And Accountability Implementation Act Of 2001 From California Health And Safety Code >> Division 110.
130301
. The Legislature finds and declares the following:
(a) The federal Health Insurance Portability and Accountability
Act (Public Law 104-191), known as HIPAA, was enacted on August 21,
1996.
(b) HIPAA extends health coverage benefits to workers after they
terminate or change employment by allowing the worker to participate
in existing group coverage plans, thereby avoiding the additional
expense associated with obtaining individual coverage as well as the
potential loss of coverage because of a preexisting health condition.
(c) Administrative simplification is a key feature of HIPAA,
requiring standard national identifiers for providers, employers, and
health plans and the development of uniform standards for the coding
and transmission of claims and health care information.
Administration simplification is intended to promote the use of
information technology, thereby reducing costs and increasing
efficiency in the health care industry.
(d) HIPAA also contains new standards for safeguarding the privacy
and security of health information. Therefore, the development of
policies for safeguarding the privacy and security of health records
is a fundamental and indispensable part of HIPAA implementation that
must accompany or precede the expansion or standardization of
technology for recording or transmitting health information.
(e) The federal Department of Health and Human Services has
published, and continues to publish, rules pertaining to the
implementation of HIPAA. Following a 60-day congressional concurrence
period, health providers and insurers have 24 months in which to
implement these rules.
(f) These federal rules directly apply to state and county
departments that provide health coverage, health care, mental health
services, and alcohol and drug treatment programs. Other state and
county departments are subject to these rules to the extent they use
or exchange information with the departments to which the federal
rules directly apply.
(g) In view of the substantial changes that HIPAA will require in
the practices of both private and public health entities and their
business associates, the ability of California government to continue
the delivery of vital health services will depend upon the
implementation of HIPAA in a manner that is coordinated among state
departments as well as our partners in county government and the
private health sector.
(h) The implementation of HIPAA shall be accomplished as required
by federal law and regulations and shall be a priority for state
departments.