HCCA-CHPC EXAM LATEST ACTUAL EXAM 400
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |AGRADE
What is the purpose of HIPAA? - ANSWER: • Protect PHI from unauthorized
disclosure/use;
• Prevent fraud, waste and abuse (via Administrative Simplification);
• Make health insurance portable under ERISA;
• Move health care onto a nationally standardized electronic billing platform
Ref. https://quizlet.com/6202453/hcca-chpc-overview-flash-cards/
More on HIPAA: https://www.hhs.gov/hipaa/index.html
HIPAA resides in which CFR section? - ANSWER: 45 CFR sections 164.102 through
164.534
What are the subparts of HIPAA part 164? - ANSWER: HIPAA - 45 CFR 164, subparts:
Subpart A - General rules
Subpart C - Security
Subpart D - Breach notification
Subpart E - Privacy
How do you determine if an organization is a "Covered Entity"? - ANSWER: 1.
compare if the organization meets one of the 3 types of CE (provider, health plan,
clearinghouse)
and
2. determine if the organization electronically transmits one of the 9 defined
transactions:
• Health claims or equivalent encounter information
• Health claims attachments
• Enrollment and disenrollment in a health plan
• Eligibility for a health plan
• Health care payment and remittance advice
• Health plan premium payments
• First report of injury
• Health claim status
• Referral certification and authorization
In addition, business associates of covered entities must follow parts of the HIPAA
regulations.
https://www.hhs.gov/hipaa/for-individuals/guidance-materials-for-consumers/
index.html
,This Act established in 1974 was created for government agencies placing
restrictions on how the government can share the information maintained in Federal
systems of records that might infringe on an individual's privacy rights with other
individuals and agencies. - ANSWER: The Privacy Act of 1974
Which of the following is not considered a HIPAA Entity Designation:
1. Affiliated covered entity
2. Entity that performs healthcare and non-healthcare component activities
including both covered and non-covered functions
3. A group health plan
4. Contract arrangement with FEDEX carrier - ANSWER: 4. Contract arrangement
with FEDEX carrier
What is Gramm-Leach-Bliley Act (GLBA)? - ANSWER: Gramm-Leach-Bliley Act (GLBA),
also known as the Financial Services Modernization Act of 1999, includes The
Financial Privacy Rule and The Safeguards Rule requires all financial institutions to
protect customer's personal financial information.
What is an OHCA? - ANSWER: OHCA (Organized Health Care Arrangement) it's a
clinically integrated care setting where individuals receive health care from more
than one provider.
These are joint arrangements/activities and have an Integrated Delivery System for
easy exchange of PHI data. See 45 CFR 160.103. OHCAs can also utilize a joint NPP.
See 45 CFR § 164.520(d).
ACE (Affiliated Covered Entity) do not have an Integrated Delivery System because
these are legally separate covered entities that are associated in business, or
affiliated as a result of some common control or ownership.
Both the OHCA and the ACE would allow sharing of PHI across participating entity
lines for treatment, payment, operations purposes (TPO).
What's an ACE? - ANSWER: ACE (Affiliated Covered Entity)
Legally separate covered entities that share common control/ownership and
designate themselves as a single CE for the purpose of complying with the HIPAA
Privacy standards.
ACEs do not have an Integrated Delivery System, while OHCA do, and can share a
single NPP. See 45 CFR § 164.520(d)
ACE example: a health system composed on several affiliated hospitals.
Both the OHCA and the ACE would allow sharing of PHI across participating entity
lines for treatment, payment, operations purposes (TPO).
,What's a Hybrid Entity? - ANSWER: Entity that conducts both covered functions (or
healthcare-functions) and non-covered functions (other biz/non-healthcare
functions) to elect to be a "hybrid entity."
For instance, a University System that has a research laboratory or academic medical
center.
The post-secondary functions (non-healthcare components) do NOT need to comply
with HIPAA.
The research lab/med center functions (healthcare component) needs to comply
with HIPAA provisions to protect the use/disclosure of PHI involved.
The transmission of information between two parties to carry out financial or
administrative activities related to health care is called: - ANSWER: Transaction
(healthcare transaction).
Few examples of healthcare transactions:
healthcare claims;
coordination of benefits;
health plan premium payments;
remittance advice (or ETF, electronic fund transfer);
referral certification and authorization
What are examples of a BA? - ANSWER: BA (Business Associate) - performs functions
or activities on behalf of a covered entity that involve access by the business
associate to protected health information.
Examples:
claims processing
data analysis
billing
benefit management
quality assurance
quality improvement
practice management
legal
actuarial
accounting
accreditation
other administrative services
https://www.hhs.gov/hipaa/for-professionals/privacy/guidance/business-
associates/index.html
, True or False:
A hospital is not required to have a business associate contract with the specialist to
whom it refers a patient and transmits the patient's medical chart for treatment
purposes. - ANSWER: TRUE
Remember, use and disclosure of PHI for purposes of TPO requires no specific
authorization
True or False:
Business Associates After HITECH:
HITECH made business associates directly responsible for HIPAA compliance within
their individual businesses that would not otherwise be subject to HIPAA regulations
and penalties - ANSWER: TRUE
Even if no written contract exists between the covered entity and a contracted
company performing services related to handling PHI in some form, the company is
deemed a business associate by law. This deemed status essentially classifies
contracted vendors or individuals as business associates solely by the nature of the
services they provide to a covered entity, regardless of whether they intended to be
classified as business associates or were aware of their status as such. HIPAA and
HITECH may hold these vendors to business associate obligations as long as they act
as business associates.
Likewise, a subcontractor that creates, receives, maintains, or transmits PHI on
behalf of a business associate is a business associate. A subcontractor of a
subcontractor is a business associate as well, and so on down the line.
Ref. 2023 HCCA Complete Healthcare Compliance Manual
Ref. HITECH Act and OCR's 2013 final rule
True or False:
Under HIPAA and HITECH, individuals or entities who have been identified as
business associates are obligated to enter into a business associate agreement with
their contracted covered entities. - ANSWER: TRUE
Business associate agreement mandate under the HIPAA Privacy Rule. There are
some exceptions such:
- for purposes of TPO, including payment for health plan premiums
- for determining health plan eligibility and enrollment
- when there is no involvement of use/disclosure of PHI (e.g., building maintenance)
True or False:
Under HIPAA and HITECH, individuals or entities who have been identified as
business associates are obligated to enter into a business associate agreement with
their contracted covered entities. - ANSWER:
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