Aggressive New Texas Law Increases Fines, Training Rules; Could Hit CEs Nationwide
Aishealth.com explains the new Texas Medical Privacy Act that has recently been signed into law and quotes Dr. Deborah Peel of PPR in their latest report on patient privacy. The report is only available through subscription but below are a few key points and quotes from it. If you have a subscription to aishealth.com, you can view the full article at Aggressive New Texas Law Increases Fines, Training Rules; Could Hit CEs Nationwide.
“A new Texas law governing the privacy and security of protected health information, perhaps the broadest and among the toughest of such laws in the nation, went into effect on Sept. 1. The Texas Medical Privacy Act, signed into law June 17, 2011, by Gov. Rick Perry (R), not only increases requirements beyond those in HIPAA for organizations that are already covered entities (CEs), but greatly expands the number and type of Texas-based CEs required to comply with the privacy standards in HIPAA and adds a bunch of its own requirements. It contains separate mandates for breach notification of electronic PHI and penalties for violations.
The new law ‘is basically HIPAA, but applies to everyone who touches PHI’ and will have a ‘big impact on entities that get PHI but aren’t technically business associates – which are now effectively covered in Texas and must comply with HIPAA restrictions on use and disclosure,’ says longtime HIPAA expert and Texas attorney Jeff Drummond, a partner in the Dallas office of Jackson Walker LLP.
‘The biggest impact on CEs and BAs are the shorter timeframes for giving access to records and the training requirement,’ he says. And the new law, which amends two existing areas of Texas regulations, carries a punch: the law provides for ‘administrative, civil and criminal penalties’ that dwarf even those that were expanded under HITECH.
The law is likely to have an impact outside of Texas and spur privacy advocates to push for similar legislation in their states or at the national level. One of the most outspoken patient privacy advocates, Austin psychiatrist Deborah Peel, was among those who supported the law, testifying before elected officials during their deliberations in 2011.
‘We hope the Texas law inspires other states to write strong laws that emphatically reject hidden data flows that the data mining and data theft industry profit from at our expense,’ Peel tells RPP. ‘The states can restore
and strengthen personal control over health information – it’s what the public expects from health information technology systems and it’s our right to have [such control].’ Peel adds that “It’s also good business to prevent thousands of people from accessing PHI, [as] fraud, identity theft and medical identity theft are exploding.’”