Navigating New State Health Privacy Laws: A Compliance Guide

Healthcare organizations are forced to navigate an increasingly complex regulatory environment, and new state consumer privacy laws are only adding to the intricate web of healthcare compliance. New state privacy laws continue to populate across the country, further redefining how healthcare organizations manage and protect consumer health data beyond the bounds of the federal Health Insurance Portability and Accountability Act (HIPAA). If you live in a state that has yet to enact a consumer privacy law, you’re not off the hook. One is likely on its way.

It’s no secret maintaining compliance amid these new laws can be complex and confusing, especially as regulations vary from state to state. Understanding how a new state ruling applies to and affects your healthcare organization is paramount. Failing to adhere to state health privacy laws and regulations can result in severe consequences, including legal repercussions, costly fines, breach of patient trust and damage to your organization’s reputation.

While it can all feel overwhelming, it doesn’t have to be. With the right tools, support and specialty resources, you can stay ahead of compliance challenges and get back to doing what you and your staff do best – providing quality care to those who need it most. 

Evolving Privacy Laws: Moving Beyond HIPAA

HIPAA has long served as the federal standard for patient health information (PHI) protection. However, what’s not included in HIPAA jurisdiction is consumer health data (CHD), which is often collected through mobile apps, wearable fitness trackers, telehealth platforms and other consumer-based entities and vendors. Take an Apple Watch, for example. It can monitor your heart rate, track your steps, and even help manage medications.

In order to effectively protect this sensitive data, states like California, Colorado, Virginia, and New Jersey are broadening privacy protections and establishing new laws that cast a wider net of jurisdiction regarding personal health information. As more states continue to implement unique privacy protections outside of traditional healthcare entities, provider organizations find themselves in an increasingly fragmented landscape – especially those who have multiple locations across different states. Being made aware of these laws, understanding them, and remaining vigilant about further changes is key.

PHI vs. CHD

While they both involve sensitive health-related details that can identify an individual, PHI and CHD differ primarily in scope and regulation. PHI refers to any medical information generated, used, or shared by healthcare providers and entities under HIPAA. It’s strictly regulated to protect patient confidentiality in healthcare settings. CHD, on the other hand, is collected outside traditional healthcare environments through apps, fitness trackers, or wellness platforms. Unlike PHI, collected CHD isn’t fully covered by HIPAA, leaving it subject to varying state consumer privacy laws focused on data use, consent, and transparency.

Key Differences Between HIPAA and State Privacy Laws

Although HIPAA and state privacy laws share common goals — protecting patient data and consumer privacy — they differ in several ways. In addition to scope of coverage in regard to where the data is collected, here are some distinctions to note: 

Consumer Rights: State and consumer privacy laws frequently grant individuals rights over their data beyond what HIPAA offers. The California Privacy Rights Act (CPRA), for example, grants consumers the right to access, delete and correct their personal health data, as well as opt of data sharing or selling altogether.

Transparency & Consent: Many state laws require greater transparency in data collection initiatives. This means disclosing what types of data is being collected, how it will be used and who it may be shared with – further adding to operational complexities for providers. State laws may also require explicit consent for data use, particularly in the case of minors.  This differs from HIPAA’s approach, as consent is not required for every data processing instance and focuses on data that reveals identifiable health information.

These differences, among others, contribute to a greater compliance burden for healthcare organizations. In an environment where even small mistakes can lead to hefty penalties, healthcare organizations providers must adopt a proactive, comprehensive approach to consumer privacy compliance. 

The Path to Compliance

One thing is clear: state consumer privacy laws aren’t going anywhere. In fact, they’re only going to expand and evolve over time. It’s up to healthcare organizations to stay a step ahead. Here are some steps healthcare providers can take to evaluate your current process and help make compliance simple while avoiding confusion.

1. Understand and document how patient data is used. Knowing how your organization collects, processes, and shares covered personal information offers insight into applicability of regulations and lays the groundwork for your breach response.
2. Conduct and document a security risk analysis. Identify gaps, if any, between current cybersecurity policies, practices and controls and the statutory requirements. Conduct data protection risk assessments (where required) and implement additional policies and controls. Use a document management system to track all actions and precautions.
3. Update business associate agreements (BAA) and contracts. Compare your existing BAA and contracts with U.S. Consumer Privacy Law content and data restriction requirements. Update, renegotiate, e-sign, and store in a compliance platform. 
4. Update employee privacy training. Provide annual HIPAA training that also meets applicable state regulations. Include organization-specific training for employees who manage consumer inquiries to verify and handle those requests in a timely and consistent manner.

These steps are only brushing the surface. For more action items designed to help you maintain compliance and limit liability, check out our full Healthcare Data Privacy Checklist. 

All of that said, without an efficient healthcare compliance system and process already in place, these necessary to-dos can turn into a cumbersome and laborious cycle. Using a compliance platform, such as MedTrainer, can simplify your response to regulatory changes by increasing efficiency, automation, and time savings. Easily update documents, policies, and contracts in real time while maintaining version control and sending for electronic signatures.

Don’t let the complexities of compliance get in the way of providing quality care. Keep operational wheels turning with an all-in-one compliance platform designed with the user in mind.