First Choice Health Home : Employee Assistance Program : HIPAA Information

April 15, 2004

Dear Clients, Customers, Providers, and Brokers:

This letter is in response to inquiries regarding the position of the First Choice Health Employee Assistance Program (FCH EAP) and HIPAA Privacy.

FCH EAP, in consultation with our legal counsel, has determined that the FCH EAP program is not a health plan or group health plan subject to the Health Insurance Portability and Administrative Act of 1996 (“HIPAA”) administrative simplification provisions.

More specifically, the FCH EAP program provides assessment and referral services to eligible persons for the purpose of referring them to sources of assistance. It does not provide counseling or other medical services, and is, therefore, not a health plan or group health plan subject to HIPAA’s administrative simplification requirements.

In stating this conclusion we would emphasize that FCH EAP remains committed to protecting the confidentiality of each individual’s health information. Confidentiality is a cornerstone of our program. To address this subject, The FCH EAP client service agreement, Section III; Confidentiality of Health Information, makes reference to the HIPAA Privacy rules and Washington State law as a standard in conducting business with FCH EAP. Additionally, the FCH EAP Preferred Provider Agreement for participating providers, section 2.7, contractually provides for provider compliance with all generally accepted rules for conducting confidential clinical practice.

Finally, FCH EAP operates under a corporate set of confidentially policies approved by the First Choice Health Network, Inc. Compliance Committee. As required by these policies, FCH EAP staff are subject to HIPAA Privacy training information and are required to sign a confidentiality agreement at hire.

FCH EAP recognizes the complex requirements that the HIPAA Privacy rules place upon providers and plan sponsors. We hope our interpretation of the information referenced in this letter minimizes any associated administrative burden or anxiety for our EAP clients and customers.

If you have questions regarding the FCH EAP and HIPAA please contact Tom Maschhoff, VP EAP Services at (206) 268-2465 or Sheila Nishimoto, Compliance Analyst at (206) 268-2331.