AB 2174, as introduced, Jones. Health care.
Existing law, the Health Insurance Portability and Accountability Implementation Act of 2001, establishes the Office of Health Information Integrity within the California Health and Human Services Agency, which is responsible for implementing the provisions of the federal Health Insurance Portability and Accountability Act (HIPAA). Existing law makes various findings and declarations about HIPAA.
This bill would make a technical, nonsubstantive change to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 130301 of the Health and Safety Code
2 is amended to read:
The Legislature finds and declares the following:
4(a) The federal Health Insurance Portability and Accountability
5Act (Public Law 104-191), known as HIPAA, was enacted on
6August 21, 1996.
P2 1(b) HIPAA extends health coverage benefits to workers after
2they terminate or change employment by allowing the worker to
3participate in existing group coverage plans, thereby avoiding the
4additional expense associated with obtaining individual coverage
5as well as the potential loss of coverage because of a preexisting
6health condition.
7(c) Administrative simplification is a key feature of HIPAA,
8requiring standard national identifiers for providers, employers,
9and health
plans and the development of uniform standards for the
10coding and transmission of claims and health care information.
11Administration simplification is intended to promote the use of
12information technology, thereby reducing costs and increasing
13efficiency in the health care industry.
14(d) HIPAA also contains new standards for safeguarding the
15privacy and security of health information. Therefore, the
16development of policies for safeguarding the privacy and security
17of health records is a fundamental and indispensable part of HIPAA
18implementation that must accompany or precede the expansion or
19standardization of technology for recording or transmitting health
20information.
21(e) The federal Department of Health and Human Services has
22published, and continues to publish, rules pertaining to the
23implementation of HIPAA. Following a 60-day congressional
24concurrence period, health providers
and insurers have 24 months
25in which to implement these rules.
26(f) These federal rules directly apply to state and county
27departments that provide health coverage, health care, mental
28health services, and alcohol and drug treatment programs. Other
29state and county departments arebegin insert alsoend insert subject to these rules to the
30extent they use or exchange information with the departments to
31which the federal rules directly apply.
32(g) In view of the substantial changes that HIPAA will require
33in the practices of both private and public health entities and their
34business associates, the ability of California government to
35continue the delivery of vital health services will depend upon the
36implementation of HIPAA in a manner that is coordinated among
37state departments as well as our partners
in county government
38and the private health sector.
P3 1(h) The implementation of HIPAA shall be accomplished as
2required by federal law and regulations and shall be a priority for
3state departments.
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