Wednesday, February 18, 2009

VA settles lawsuit, A call to revamp HIPPA, and Stimulus Bill includes protection for digital health care records

U.S. Veteran Affairs Department settles data breach case

The U.S. Department of Veterans Affairs (VA) has settled a class-action lawsuit resulting from a massive data breach that left 26.5 million active duty troops and veterans open to the risk of identity theft.

Under the terms of the settlement, the VA will pay $20 million. The money is to be given to military personnel and veterans who are able to show that they were harmed by the data loss -- either in physical manifestations of emotional distress or by costs of monitoring credit records. Individual payments could be as high as $1,500. (Read full story here)

Stimulus bill includes protection for digital health care records

A portion of the $818 billion stimulus bill that was passed this week by the U.S. House calls for computerizing all health records in five years, but the legislation also contains stringent privacy and security controls to protect this online data.

Experts said these measures would complement the Health Insurance Portability and Accountability Act (HIPAA), approved in 1996, by bringing privacy and security regulations more in line with the digital age. That's an important move, considering the digitization of health records is likely to spur increased attempts at malicious intrusion.

....Part of the stimulus bill dealing with new health information technology includes provisions for breach notification, enforcement, audit trails and encryption. It also prohibits the sale of medical information.

However, the legislation fails to reference medical identity theft, a growing problem that affects an estimated quarter of a million people each year, Dixon said.

...To combat medical ID theft, the bill should require a more comprehensive audit trail, so patients can learn any time their records have been used -- not just when their information has been wrongfully disclosed.

Phil Neray, vice president of marketing at data security firm Guardium, said that because patient records will be stored in the cloud, they will attract the ire of hackers. (Full text at www.scmagazine.com)

A call to revamp HIPAA

The Health Insurance Portability and Accountability Act (HIPAA) is inadequate for protecting privacy and also stymies research, as access to patient health information is vital for making medical advances, according to a new report from the National Academy of Sciences' Institute of Medicine (IOM).

The report, titled “Beyond the HIPAA Privacy Rule: Enhancing Privacy, Improving Health Through Research,” suggests that privacy protection in research should not be governed by current HIPAA privacy rules. Rather, a new approach should be tried, one involving improved privacy, data security and accountability standards for all health research, regardless of who pays for it or conducts the research. (Full text at www.scmagazineus.com)

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