Demystifying the HIPAA Risk Assessment for HR Professionals

Posted by BAS - 05 October, 2023

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In the world of HR, protecting sensitive employee health information is always top of mind. That's where HIPAA (Health Insurance Portability and Accountability Act) comes into play. Part of HIPAA compliance requires a health plan to conduct a HIPAA risk assessment. In this article, we'll break down what a HIPAA risk assessment is, why it's crucial for HR professionals, and how to approach it while staying compliant and secure.

Understanding HIPAA:

HIPAA, enacted in 1996, establishes important standards for the protection of health information. It applies to various entities, including healthcare providers and health plans. By extension, certain HIPAA rules apply to HR departments that handle employee health plan data. HR professionals are responsible for safeguarding this information to maintain compliance and ensure employee privacy.

What is a HIPAA Risk Assessment?

A HIPAA risk assessment, also known as a Security Risk Assessment or SRA, is a systematic process that identifies, analyzes, and manages potential risks and vulnerabilities to protected health information (PHI). It evaluates how an organization safeguards employee personally identifiable health information from a health plan health data and whether the safeguards comply with HIPAA's Security Rule.

Why is it Crucial for HR Professionals?

  • Compliance Assurance: HR professionals need to ensure that their organization complies with HIPAA regulations. Failing to do so can result in severe penalties, including fines and legal consequences.
  • Data Security: Employee health information received from the health plan is highly sensitive. A risk assessment helps identify vulnerabilities and develop strategies to protect this data from unauthorized access or breaches.
  • Employee Trust: Protecting health plan information not only ensures compliance but also builds trust among employees. Knowing their data is safe can enhance the overall employee experience.

How to Approach a HIPAA Risk Assessment:

  • Identify PHI Data: Start by identifying all the places where employee health data is stored, whether in physical files or electronic systems. Identify when the information is from the health plan and when it is from other sources.
  • Conduct a Comprehensive Analysis: Evaluate the potential risks and vulnerabilities related to this data. This may include assessing physical security, network security, and employee training.
  • Assess Current Safeguards: Review existing policies, procedures, and security measures in place to protect PHI.
  • Document Findings: Record the results of your risk assessment, including identified risks and potential security gaps.
  • Develop a Risk Management Plan: Based on your assessment, create a comprehensive risk management plan that outlines steps to mitigate identified risks.
  • Implement Safeguards: Put your risk management plan into action. This may include enhancing employee training, implementing encryption protocols, or strengthening physical security measures.
  • Regularly Review and Update: Conduct periodic assessments to ensure ongoing compliance and security. HIPAA compliance is an ongoing process.

Conclusion:

A HIPAA risk assessment is a crucial component of HR professionals' responsibilities when it comes to protecting employee health plan information. It's not just about compliance; it's about safeguarding sensitive data and maintaining trust. HR professionals should prioritize complying with HIPAA requirements, enhancing data security, and ultimately creating a safer and more trustworthy environment for employees.


Benefit Allocation Systems (BAS) provides best-in class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.

MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).

Topics: HIPAA, MyEnroll360 Security, HR & Benefit Plans, Cybersecurity


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