Privacy Notice

Notice of Privacy Practices

Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule is a federal regulation designed to safeguard the privacy of an individual’s health information. The deadline for the City of Wharton to comply with the Privacy Rule is April 14, 2003. The requirements of the Privacy Rule will affect what information the City of Wharton shares with you and with employees and dependents covered under the plan benefits. This notice explains some of the changes that will be made beginning in April 2003.

Scope of Privacy Rule

The Privacy Rule applies to all health plans administered including medical coverage, dental coverage, vision coverage, and medical expense reimbursement accounts.

Notice of Privacy Practices

The Privacy Rule requires that each covered employee, continuation of coverage enrollee, or covered retiree receive a notice of privacy practices before April 14, 2003. Newly enrolled employees must receive a copy of the notice at the time of enrollment. Employees and others must be given a paper copy of the notice. An e-mail of the notice, or other electronic transmission, will not meet the Privacy Rule’s requirements. The Privacy Rule also requires the City of Wharton maintain the notice on its web site.

The Notice of Privacy Practices explains how the City of Wharton may use and disclose an individual’s protected health information without the individual’s authorization. It explains an individual’s rights under the Privacy Rule. Also, the notice tells an individual how he or she may file a complaint about the City of Wharton's privacy practices either with the City of Wharton or with the Secretary of the U.S. Department of Health and Human Services.

Enrollment Forms

There will be a separate enrollment for life insurance and disability coverage. The Privacy Rule prohibits a health plan from disclosing protected health information to a non-health plan, such as a life insurance or disability carrier. Enrollment information is considered to be protected health information. However, since the City of Wharton is the employer, not a covered entity under the Privacy Rule, the City of Wharton would not be prohibited from sending a health plan enrollment information to a life insurance or disability carrier.

Reports

Since an employer is not a covered entity under the Privacy Rule and is not required to protect an individual’s health information, the Privacy Rule prohibits insurance carriers from sharing most health information about the City of Wharton employees and their dependents. There are two exceptions ¾ enrollment and disenrollment information, and summary health information.

The health care plan benefit carrier, and dental plan benefit carrier will continue to exchange enrollment and disenrollment information with the employee. The Privacy Rule recognizes that an employer needs this information for employment functions such as payroll administration.

The Privacy Rule allows the health plan benefit carrier, and dental plan benefit carrier to disclose summary information to the employee for the purposes of obtaining quotes for your employee benefits plans and for considering changes to plan benefits. Summary health information is aggregated claims information that has all individual identifiers removed. Individual identifiers include such information as name, social security number, address, date of birth, telephone number, admission or discharge date, account number, and any other unique identifying number, characteristic, or code. This means that the health care plan benefit carrier, and dental plan benefit carrier will not be able to give the employee any information that will allow you to identify who incurred a particular claim or expense.

Questions on the Privacy Rule

If you have any questions about the Privacy Rule or how it will affect the City of Wharton's services to you, please call City of Wharton's Privacy and Policy Officer, Lisa Stavena, at (979) 532-2491, ext. 225.

File Complaint

You may submit a written complaint if you disagree with your privacy rights to the Secretary of the U.S. Department of Health and Human Services, Office of Civil Rights, 200 Independence Ave. SW, Washington, D.C. 20201 or you may file a complaint to