The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that provides for certain rights and protections for employees enrolled in group health plans. Its regulations include the privacy and portability rules.

The privacy rule is intended to provide individual rights regarding protected health information (PHI). Plan sponsors of insured plans typically have few responsibilities because the insurance carrier must ensure compliance. Plan sponsors of self-insured plans and insured plans that receive PHI must comply with all aspects of the privacy rule. For our clients that sponsor self-insured plans, including health FSAs, Keller trains your staff and provides all necessary forms and notices.

HIPAA portability rules include special enrollment rights and nondiscrimination due to health factor rules. Nondiscrimination rules remain a hurdle for employers who want to structure employee health plan contributions that are based on health factors, such as discounted rates for non-smokers. However, with a properly designed wellness program, employers can implement different levels of contributions based on health factors and still be in compliance with HIPAA’s nondiscrimination rules.

As your broker, Keller can advise on HIPAA compliance and assist with the implementation of compliant wellness programs.