What are auto and workers' compensation plans considered to be?

What are auto and workers' compensation plans considered to be?

• A. They must always comply with HIPAA standards.
• B. They are exempt from HIPAA entirely.
• C. State regulated commercial insurance plans are not required to comply with HIPAA standards.
• D. Medicaid plans are subject to HIPAA only in part.

Answer: (C)

Understanding how HIPAA applies to different kinds of health plans helps here. Auto and workers' compensation plans are excluded from the HIPAA Privacy Rule because they’re governed primarily by state laws and exist to address injury claims, not to be standard health plans that pay for medical care across the board. Because of that state-regulated, purpose-specific framework, these plans do not have to follow HIPAA privacy and security standards. Medicaid, by contrast, is generally covered by HIPAA, so it is subject to those protections.

Understanding how HIPAA applies to different kinds of health plans helps here. Auto and workers' compensation plans are excluded from the HIPAA Privacy Rule because they’re governed primarily by state laws and exist to address injury claims, not to be standard health plans that pay for medical care across the board. Because of that state-regulated, purpose-specific framework, these plans do not have to follow HIPAA privacy and security standards. Medicaid, by contrast, is generally covered by HIPAA, so it is subject to those protections.