Note: To assist our insureds in complying with HIPAA's Privacy Rule, in early April 2003, SCPIE mailed the following basic letter to our policyholders. Enclosed with the letter was SCPIE's Business Associate Agreement [updated in April 2005].

Most physicians and other healthcare providers who are covered by the privacy standards of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) must comply with these new requirements by April 14, 2003.

One of the provisions of these regulations requires that a “covered entity” (including healthcare providers who engage in electronic management and distribution of patients’ protected health information, such as electronic billing and fund transfers) obtain satisfactory assurances from a “business associate” that the business associate will appropriately safeguard the protected health information it receives or creates on behalf of the covered entity.

Since business associate functions and activities may include claims processing, underwriting and administrative activities, SCPIE may be considered a business associate of its insureds.

SCPIE’s Business Associate Agreement (PDF) satisfies HIPAA’s requirement that business associates – in this case, SCPIE – abide by HIPAA’s privacy guidelines, including maintaining confidentiality of protected health information.

Therefore, it is unnecessary for you to send SCPIE your version of a Business Associate Agreement. Merely download and file the agreement with your other HIPAA compliance documents. (Remember: You must also obtain Business Associate Agreements from all of your other business associates.)

SCPIE is mailing its Business Associate Agreement to all insureds since we cannot distinguish which insureds are or are not affected by HIPAA’s privacy regulations.

The Business Associate Agreement does not modify or supercede any of the terms or conditions of your insurance policy with SCPIE.

For detailed guidance on HIPAA’s privacy regulations, including the “Business Associate” provision, log on to www.hhs.gov/ocr/hipaa/privacy.html.

If you have any questions, please contact your SCPIE Client Services Representative at 800/557-2743, or your Account Representative at 800/717-5333.