HIPAA is a well-known term in the insurance industry, though sometimes it seems vague. It is becoming more vital to insurance agents and brokers as the federal government ramps up their audits and investigations into compliance. Here are five reasons HIPAA
is important to insurance agents.
1. Secure client information:
With headlining breaches such as Target and eBay, your customers are growing more concerned about the security of their information.
2. You signed an agreement:
Your carrier agreements all stated that you would be HIPAA-compliant.
3. Carrier audits:
What may be scarier for a lot of agents is the possibility that your carrier could audit you, which is also more likely than an audit by the government. Any carrier you signed an agreement with could audit your agency. If you fail the HIPAA audit, your agreement may be canceled.
4. The fines are extraordinary:
Fines for non-compliance
quickly reach into the millions of dollars. For most insurance agents, that could put them out of business. If the HHS fines don’t put you out of business, these other sources of fines and penalties will:
5. Marketing tactic:
- Federal Trade Commission
- Attorney General
- Michigan breach law
- Lawsuit from the affected individuals
Use compliance as a way to differentiate yourself from other agents. Tell you clients, "Your privacy is
my priority. I secure your sensitive information."