HIPAA (Health Insurance Portability and Accountability Act)
Definition
A federal law that protects the privacy of employees’ health information.
What is HIPAA?
HIPAA ensures the confidentiality, integrity, and availability of health data. Employers that sponsor health plans are required to secure Protected Health Information (PHI) and limit access to it.
Why is HIPAA Important for Employers?
- Employees trust that their medical data is safe
- Applies to benefit administrators and certain wellness programs
- Promotes a culture of privacy and responsibility in the workplace
FAQs
What does HIPAA protect in the workplace?
HIPAA protects the privacy and security of employees’ personal health information (PHI) shared through employer-sponsored health plans.
Does HIPAA apply to all employers?
HIPAA applies to employers who offer group health plans and therefore act as health plan sponsors, not to employment records.
What are employers required to do to stay HIPAA compliant?
Employers must secure PHI, limit access, follow proper data sharing protocols, and notify individuals in case of a breach.
How ExtensisHR Can Help
We ensure HIPAA-compliant benefits by:
- Limiting access to PHI
- Offering secure HRIS and benefits portals
- Educating staff on what qualifies as PHI
- Supporting breach prevention and reporting protocols