<nobr>Oct 30, 2002</nobr>

ERIC Says Employers Struggling With Lack of HIPAA Privacy Guidance

WASHINGTON, DC – The ERISA Industry Committee (ERIC)today warned that there is widespread uncertainty and confusion among plan sponsors seeking to bring their group health plans into compliance with the final HIPAA health information privacy regulation.

“Linking together all locally managed programs within one firewall, one compliance regime is not an enviable task,” said Kevin Fitzgerald, Health Care Counsel for General Electric Company. “It will take some time and effort to bring all of the players up to speed.” Mr. Fitzgerald testified on behalf of ERIC before the National Committee on Vital and Health Statistics (NCVHS) Subcommittee on Privacy and Confidentiality at a hearing held in Baltimore.

ERIC’s testimony stressed particular concern over the preemption provision in the regulation, called it “utterly unworkable” and urged the panel to support a different approach. “The preemption provision contained in the regulation is one the most pervasive problems facing employers in their ability to comply with the law.”

ERIC also called for additional guidance regarding certain health-related activities, including on-site and off-site clinics, administration of flu shots, fitness centers, and health promotion and risk assessment programs. For example, employers are unsure whether these activities fall within the definition of “health plan” or “health care provider” under the regulation, and how to comply with the regulation if it applies to these activities.

ERIC offered to convene a working panel of experts to meet with government experts on a periodic basis to discuss ongoing compliance issues.

The ERISA Industry Committee (ERIC) is a non-profit association committed to the advancement of employee retirement, health, and welfare benefit plans of America's largest employers and represents exclusively the employee benefits interests of major employers. ERIC's members provide comprehensive retirement, health care coverage and other economic security benefits directly to some 25 million active and retired workers and their families. ERIC has a strong interest in proposals affecting its members' ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.

Media Contact: Doug Baj, Director, Communications, ERISA Industry Committee, (202) 789-1400,dbaj@eric.org.

Full text PDF of ERIC’s Comments

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