Hi All, 

We (at my insurance company) are having a debate on the Private Communications portion 
of the Privacy Regulations. We all agree about sending the EOB to the person 
requesting Private Communications, the concern revolves around how to pay the claim. 

Let me set the scenario, we have a large number of providers that we contract with, 
but still have a significant number in our state that we don't have a contract with. 
Our contract with our providers specifies that we have to pay a contracting provider 
directly. As a part of the contract with the subscriber, we pay the subscriber 
directly if they go to a non-contracting provider. Paying the subscriber directly is 
where the problem comes in..... 

Dependent B (part of subscriber A's contract) requests private communications. If the 
provider is a contracting provider, everything works... we pay the provider and send 
the EOB to dependent B. If the provider is non-contracting, we send the EOB to 
dependent B but cut a check to subscriber A. The concern is that subscriber A will 
figure out that something's up, after getting a check with no EOB attached. He calls 
in to our customer service, and we will have to tell subscribe A that we can't talk 
about that... that's where the stuff hits the fan if subscriber A is an abusive 
parent. 

My thoughts on how to resolve this issue is: 

The regulation says that the individual making the request (dependent B) must make 
payment arrangements if the covered entity requests. I interpreted this to mean the a 
hospital could require the individual to sign for the obligation or an insurance 
company could send payment directly to the individual who requested private 
communications (dependent B) and not subscriber A... 

Part of the debate here, is that some people think that it seems to be referring to 
ONLY the provider when the provider is asked for private communications. However, it 
seemed to me that since it doesn't say "provider" (it uses the term "covered entity") 
that when an insurance company is asked for private communications, maybe the 
insurance company could use the same clause: 

"A covered entity may condition the provision of a reasonable accommodation on: 
When appropriate, information as to how payment, if any, will be handled; " ...
(Whole section of the regulation is quoted at the end of this email). 

Since it doesn't say provider, maybe we could fit an insurance company into the 
"covered entity" label? And since it doesn't say what kind of payment, maybe an 
insurance company could fit cutting a check under the payment label.... ergo we could 
cut the check to member B, not subscriber A for a visit to a non-contracting provider. 

The biggest problem is that we have a contractual obligation to cut the check to 
either the provider (contracting provider) or to the subscriber (non-contracting). 

Now, I finally gotten to the questions: 

1) Is the interpretation that an insurance company can require payment arrangements if 
dependent B requested private communications (payment made to dependent B if provider 
is non-contracting)? In other words, could we require Dependent B sign something to 
the effect that they become responsible for paying/reimbursing any parties owed money, 
if we send them a check 

2) If dependent B goes to three different providers, but dependent B only really wants 
private communications with one of the providers (ob/gyn for birth control pills for a 
minor). Do we have to maintain the Private Communications flag at the dependent level 
for just that one claim, for all the providers that the dependent B uses now or in the 
future, or is it provider specific (just the ob/gyn)? 

3) Will the HIPAA Law/Regulations override contractual obligations (like paying the 
subscriber), like it does state law when it is less stringent than the HIPAA 
Regulations? 

Jim Moores - HIPAA Team Leader - Privacy
Antares Management Solutions
23700 Commerce Park Road
Beachwood, Ohio 44122-5832 
[EMAIL PROTECTED]
Phone: (216)292-1605
Fax: (216)292-1619 
_____________________________________________________________________ 
CONFIDENTIAL COMMUNICATIONS REQUIREMENTS 
SECTION 164.522(b) 

As Contained in the HHS Final HIPAA Privacy Rules 
HHS Regulations Confidential Communications Requirements - � 164.522(b) 

1. Standard: confidential communications requirements. 

i. A covered health care provider must permit individuals to request and must 
accommodate reasonable requests by individuals to receive communications of protected 
health information from the covered health care provider by alternative means or at 
alternative locations. 

ii. A health plan must permit individuals to request and must accommodate reasonable 
requests by individuals to receive communications of protected health information from 
the health plan by alternative means or at alternative locations, if the individual 
clearly states that the disclosure of all or part of that information could endanger 
the individual, 

2. Implementation specifications: conditions on providing confidential communications. 

i. A covered entity may require the individual to make a request for a confidential 
communication described in paragraph (b)(1) of this section in writing. 

ii. A covered entity may condition the provision of a reasonable accommodation on: 

   A. When appropriate, information as to how payment, if any, will be handled; and 
   B. Specification of an alternative address or other method of contact. 

iii. A covered health care provider may not require an explanation from the individual 
as to the basis for the request as a condition of providing communications on a 
confidential basis. 

iv. A health plan may require that a request contain a statement that disclosure of 
all or part of the information to which the request pertains could endanger the 
individual. 



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