Rivet Health Blog

HIPAA & Prior Authorization: New Rules Explained | Rivet Health

Written by Alexa Reimschussel | May 23, 2022 2:26:08 PM

This article defines HIPAA and includes some of the requirements to be compliant with federal regulations. It also briefly talks about proposed legislation for private health information as it pertains to prior authorization.

The HIPAA Privacy Rule specifically addresses the use and disclosure of PHI, allowing it to be shared only with proper written authorization or under certain exceptions. The HIPAA Security Rule focuses on securing electronic protected health information (e-PHI), establishing safeguards that must be followed by any health care provider or organization working with electronic health data.

Both rules form the foundation for ensuring patient access to their own PHI while setting boundaries for disclosure of PHI. The rules are also crucial in managing the compliance and security of prior authorization requests, a growing challenge in modern health care operations.

The Security Rule

  • Applies to health plans, health care clearinghouses and any health care provider who works with electronic health information (every provider). 
  • Protects privacy of electronic protected health information (PHI). 
  • Does NOT apply to oral or written PHI transmission. 
  • Only authorized persons can access an individual’s PHI.

Security Rule Safeguards (generally)

  • Administrative safeguards include stipulations around securing a security management process, security personnel, information access management, workforce training and periodic evaluation. 
  • Physical safeguards include facility access/control and workstation/device security to protect electronic PHI (e-PHI) from getting into unauthorized hands.
  • Technical safeguards include PHI access control, audit controls, integrity controls and transmission security. 
  • In the event of an information breach, the covered entity must take reasonable steps to cure the problem/end the violation.
  • A covered entity must update documentation periodically.

The Privacy Rule

  • Applies to health plans, health care clearinghouses and any health care provider who works with electronic health information (every provider). 
  • Allows PHI to be disclosed under specific conditions. 
  • Only allows PHI disclosure with written authorization unless certain circumstances arise.

Learn more in this Privacy Rule Summary and on OCR's Enforcement Rule page. See “HIPAA FAQs for Professionals” to see frequently asked questions by category.

Proposed Rule by HHS on January 24, 2022

Summary: HHS is seeking input from the public about electronic prior authorization standards, implementation specifications and more. 

Specifically, the proposed rule mandates that HHS clarify requirements under HIPAA for electronic prior authorizations. According to the Federal Register website, HHS has only adopted operating rules for three HIPAA transactions: “eligibility for a health plan, healthcare claim status, healthcare electronic funds transfers (EFT) and remittance advice.” 

The comment period ended in March 2022, so findings should be published soon.

New HIPAA guidance for prior authorization would issue a PHI standard for prior authorization across the board, helping to ensure security for patients in need of prior authorization

Prior authorization has become such a giant part of healthcare. On average , practices work on 41 prior authorizations per week. In fact, prior authorization is such a massive undertaking that approximately 40% of physicians have staff who work exclusively on prior authorizations

The legislation, "Request for Information: Electronic Prior Authorization Standards, Implementation Specifications, and Certification Criteria" discusses possible solutions to the burden of prior authorization (and not just on the HIPAA front). Back in 2019 the Health Information Technology Advisory Committee (HITAC) identified a "need for standards to support the integration of prior authorization into all applicable EHR-based ordering workflows."

HITAC recommended that standards be established for prior authorization workflows. 

Learn more about this proposed legislation here.

New HIPAA Guidance for Prior Authorization

In 2022, the Department of Health and Human Services (HHS) proposed updates to HIPAA, focusing on the electronic prior authorization process. The proposed rule aims to streamline prior authorization requests by establishing new standards for electronic prior authorization and creating uniform requirements for handling protected health information during the prior authorization process. These changes would reduce the administrative burden on health care providers and improve efficiency for payers.

The proposed changes are part of broader efforts to integrate prior authorization into health care workflows, especially for electronic eligibility checks. The rule would set guidelines for how PHI is managed across covered entities, ensuring that patients’ medical records are secure while complying with HIPAA’s minimum necessary standard.

One of the most significant updates relates to the use of application programming interfaces (APIs) to facilitate faster prior authorization responses from health plans. The rule also highlights the need for clear safeguards for PHI during prior authorization to maintain compliance with the HIPAA Privacy Rule and Security Rule.

By addressing the complexities of prior authorization, this legislation aims to simplify the process for health care providers and improve patient care by ensuring that prior authorization requests are handled securely and efficiently.

Simplifying Prior Authorizations with HIPAA Compliance

Managing prior authorization requests is a significant administrative burden for many health care providers, with some practices handling as many as 41 requests per week. Under HIPAA, these requests must be managed in a way that protects protected health information (PHI) and complies with the HIPAA Privacy Rule and Security Rule. This can be especially challenging when dealing with electronic prior authorization systems and ensuring that all safeguards are in place to prevent breaches or improper disclosure of PHI.

The new proposed rule by HHS is designed to streamline the prior authorization process by implementing uniform standards for electronic prior authorization across all health plans. This would ensure that both health care providers and payers can securely manage prior authorization requests using application programming interfaces (APIs) and other technology solutions, while still complying with HIPAA’s minimum necessary standard for the disclosure of PHI.

The proposed rule also clarifies the rights of patients under HIPAA to access their medical records and understand how their information is used during the prior authorization process. It reinforces the role of covered entities in maintaining compliance, particularly when mental health or other sensitive PHI is involved.

By establishing clear standards for the prior authorization process, the proposed rule helps ensure that PHI is handled securely while minimizing delays in patient care. As these changes are finalized, they will provide much-needed clarity for health care providers, improving both compliance and efficiency in managing prior authorization requests.

Streamlining Prior Authorization with HIPAA Compliance

As the demands of managing prior authorization requests continue to grow, the No Surprises Act and updated HIPAA regulations are key to simplifying the process. By enforcing new standards for electronic prior authorization and ensuring the protection of protected health information (PHI), health care providers can improve efficiency while maintaining compliance with the HIPAA Privacy Rule and Security Rule. These changes will not only reduce administrative burdens but also enhance patient care by speeding up the prior authorization process.

Rivet offers software solutions that integrate with your EHR for up-front patient cost estimates (that comply with the No Surprises Act), as well as denied claim and underpaid claim solutions.

Discover how Rivet’s tools can help streamline your prior authorization requests and ensure compliance with HIPAA. Request a Rivet demo now.

FAQ Section:

1. What is HIPAA prior authorization?
HIPAA prior authorization refers to the requirements for safeguarding protected health information (PHI) during the prior authorization process for medical services or treatments.

2. How does the HIPAA Privacy Rule affect prior authorization?
The HIPAA Privacy Rule regulates the use and disclosure of PHI during prior authorization requests, requiring patient consent or an authorization form unless exceptions apply.

3. What are electronic prior authorization standards under HIPAA?
Proposed electronic prior authorization standards streamline the process by automating requests between health care providers and health plans, reducing administrative delays.

4. Who enforces HIPAA rules related to prior authorization?
The Office for Civil Rights (OCR), under the Department of Health and Human Services (HHS), enforces compliance with HIPAA regulations, including those concerning prior authorization.

5. How does the proposed rule impact health care providers?
The proposed rule simplifies prior authorization requests by standardizing electronic workflows, reducing manual work, and enhancing data security in compliance with HIPAA.

Shameless Plug: Rivet Estimates help your practice succeed.

Rivet offers software solutions that integrate with your EHR for up-front patient cost estimates (that comply with the No Surprises Act), as well as denied claim and underpaid claim solutions.

To see a demo and discuss billing pain points, request a Rivet demo now.