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Further Implications of the U.S. Patriot Act for Hospitals
By Dr. David E. Marcinko; MBA, CMP™
By Hope R. Hetico; RN, MHA, CMP™
With the recent popularity and growth of health savings accounts (HSAs) and / or medical savings accounts (MSAs), compliance with the USA Patriot Act of 2002 has become an important issue for these new, hybrid health insurance products.
Many of these insurance plans place patients and insurers into relationships with shared information institutions like hospitals, healthcare organizations, medical clinics and patient clients.
The “Online” Connection
This occurs because many, perhaps even the majority of HSAs, MSAs and high deductible healthcare plans [HD-HCPs] are opened online, as patients and insurance company clients use Internet search engines to find the “best” policy type to meet their needs.
Ditto, for more traditional health insurance plans, as well?
Example:
For example, on October 1, 2003, Section 326 (Customer Identification Program) of the US Patriot Act went fully into effect, requiring the implementation of reasonable procedures to verify the identity of new customers and certain existing customers opening a new MSA or HSA account.
And, Section 3261 of the Act also requires banks, savings associations, insurance companies, hospital and medical union credit unions, and certain non-federally regulated banks to have the CIP fully implemented. Broker-Dealers [BDs] in securities are subject to similar, but slightly different rules.
Bank Secrecy Act [BSA]
For additional compliance, The USA Patriot Act also amended the Bank Secrecy Act (BSA) to give the federal government enhanced authority to identify, deter and punish money laundering and terrorist financing activities.
Increased Hospital Vigilance
This, the passage of the USA Patriot Act – and these important derivatives – means that affected hospitals and healthcare organizations must be more vigilant about laws concerning money laundering; reporting of disease and quarantine; and cyber attacks.
Moreover, it means that healthcare organizations must adhere to the Act, regarding affected health insurance policies, by meeting its Customer Identification Program (CIP) and anti-money laundering requirements.
Assessment
Whatever the financial outlays required for compliance – there be very large savings later if affected hospital assets and patient health insurance information is safeguarded against attacks of virtual or real assets.
Conclusion
And so, what is your opinion on the above health law and policy?
Related source:Marc B. Royo and David B. Nash. “Sarbanes-Oxley and Not-for-Profit Hospitals: Current Issues and Future.”
Speaker: If you need a moderator or a speaker for an upcoming event, Dr. David Edward Marcinko; MBA is available for speaking engagements. Contact him at: MarcinkoAdvisors@msn.com
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Filed under: Health Law & Policy | Tagged: Health Law & Policy |
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Verification Might Spur HIT Initiatives,
I believe that if medical providers adopted a set of common practices for validating the identity of online consumers, not only would our records be safer, it’s more likely that Personal Health Records [PHRs], and other HIT initiatives, would become more popular with all patients.
Of course, the use of “knowledge-based authentication systems” – a security method that uses one’s knowledge of facts only they should know – to establish identity is vital. In addition, confirmed identities managed by reliable third-parties, such as financial institutions, should also be included in the security-mix.
Of course, the devil-is-in-the-details, and who among us can define a ”reliable third party”, with the daily barrage of security breaches coming at us at increasingly faster rates?
Nevertheless, hospital rules and regulations mandated by both the Sarbanes-Oxley Act, as well as the Patriot Act, might be satisfied in this manner.
So, let’s start with the HIT lexicon: http://www.HealthDictionarySeries.com
But, that’s just my opinion.
What do you think; please opine?
Dr. David Edward Marcinko, MBA
Publisher-in-Chief
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Dr. Marcinko
Executive physicals, and what the Mayo Clinic doesn’t want you to know? … Blistering NEJM article.
http://content.nejm.org/cgi/content/short/359/14/1424
http://blog.lib.umn.edu/schwitz/healthnews/
Ahmed
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HSAs to Grow?
We firmly believe that high deductible health plans, and thus HSA’s, will grow rapidly in the next few years creating an opportunity for credit unions to positively impact employees and members lives by offering a competitive product.
Nick Evens
[President]
The Veridian Group Inc.
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Are HSAs the New 401(k) Plans?
Now, according to the financial services industry, flexibility with rollovers, varied investment classes and growing size are cited as a key advantage of HSAs … for the FA. But, what about clients?
http://www.financial-planning.com/news/Are-HSAs-the-New-401k-Plans-2682146-1.html?ET=financialplanning:e12316:86235a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Weekend__113012
Looks like the FAs see this as a new golden opportunity for business and AUMs.
Dr. David Edward Marcinko MBA
http://www.CertifiedMedicalPlanner.org
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CDHPs
Writing in the Health Affairs Blog, health policy savant Michael Millenson has been infected with an unusual case of naysayerosis.
http://healthaffairs.org/blog/2013/02/26/not-in-my-name-real-patient-centeredness-means-sharing-power/
When insurers give consumers the CDHP money that was theirs all along, they (gasp) reduce health care utilization and become “better shoppers!”
And in contrast to any health reform ever implemented by the central planners in Washington DC, the impact of CDHPs on medical expenditures was “modest” – as in real.
Despite that comparative success, that’s enough, according to Millenson, to toss the concept on the ash heap of other bad ideas, like those 401(k)s that were invented by the nefarious insurance executives.
Martin
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Health Savings Accounts (HSAs) Growth in 2013
The total number of HSA accounts rose to more than 9.1 million with assets totaling nearly $18.1 billion, a year over year increase of 29% for both accounts and assets for the period of June 30th, 2012 to June 30th, 2013. The average account balance halfway through 2013 grew to $1,981 from $1,879 at the end 2012, over a 5% increase. When you eliminate identified zero balance accounts that average rises to $2,228, an almost 3% year over year increase.
Total contributions to HSA accounts from June 2012 to June 2013 are estimated to have reached $16.7 billion, with accountholders retaining about 23% of those contributions. HSA investment assets reached an estimated $2 billion in June, up 14% from the end of 2012 and 26% year over year. The average investment account holder has a $10,484 average total balance (deposit and investment account).
Source: Devenir
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Senate’s Obamacare Replacement Bill will Likely Boost Health Savings Accounts
When the U.S. Senate unveils its bill to replace Obamacare Thursday, it’s fair to expect the legislation will seek to expand the benefits of health savings accounts. Senate Republicans plan to unveil the text of their draft healthcare bill as senators struggle over issues such as the future of the Medicaid program for the poor and bringing down insurance costs.
• Health savings accounts offer triple tax advantages for investors.
• The House’s American Health Care Act nearly doubles HSA contribution limits and many expect the Senate bill to have similar provisions.
• Even if Congress fails to pass a healthcare law, assets in HSAs are estimated to reach more than $53 billion by 2018, a 20 percent increase from this year.
Source: Tom Anderson, CNBC [6/21/17]
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