November 2002

Business Insurers Focus on Data Security

Baltimore, MD – Information security issues will be the dominant issue for health-care organizations as they seek insurance coverage for HIPAA related risks, according to one of the nation’s leading health data publications.

“Insurance is an important aspect of HIPAA compliance and enforcement,” said Dennis Melamed, editor and publisher of Health Information Privacy Alert. “Day-to-day compliance activities in many areas are determined as much by insurers and licensing bodies as regulators and plaintiff’s attorneys.”

Wireless electronic data systems create one of the greatest vulnerabilities to computer networks, said Michael Lamprecht, the national practice leader of e-insurance for Arthur J. Gallagher Co., a national insurance brokerage firm.

To get insurance, covered entities will have to conduct their own assessments of their computer systems and networks, Lamprecht said. This will enable the organization to determine its risks and exposures, and select the appropriate coverage. Such assessments would be required under the proposed HIPAA security regulation.

Covered entities should put more emphasis on monitoring their systems, policy and procedures, said Mark Lutes, a partner with Epstein Becker Green. According to Lutes, covered entities are not paying enough attention to this aspect of the HIPAA privacy rule.

–Source: HIPAA Newswire

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