HCCA CHPC Study Guide Updated Test Bank
and Answers (A+ Guaranteed)
• HIPAA resides in which CFR section? -✓✓45 CFR sections 164.102 through 164.534
https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164
• What are the subparts of HIPAA part 164? -✓✓HIPAA - 45 CFR 164, subparts:
Subpart A - General rules
Subpart C - Security
Subpart D - Breach notification
Subpart E - Privacy
https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164
• How do you determine if an organization is a "Covered Entity"? -✓✓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. -✓✓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 -✓✓4. Contract arrangement with FEDEX
carrier
• What is Gramm-Leach-Bliley Act (GLBA)? -✓✓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? -✓✓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? -✓✓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? -✓✓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.
,https://www.hhs.gov/hipaa/for-professionals/faq/315/when-does-a-covered-entity-have-
discretion-to-determine-covered-
functions/index.html#:~:text=For%20example%2C%20a%20hybrid%20entity,hybrid%20
entity's%20health%20care%20component.
https://privacyruleandresearch.nih.gov/pr_06.asp
• The transmission of information between two parties to carry out financial or
administrative activities related to health care is called: -✓✓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? -✓✓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. -✓✓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 -✓✓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. -✓✓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. -✓✓
• Except for TPO, list two examples where a CE requires an authorization to
use/disclose PHI -✓✓1. Sales and marketing
2. Psychotherapy notes
• How do you determine if an entity is subject to HIPAA? -✓✓By understanding the
applicability (healthcare component), entities that transmit health information and fall
under the 3 types of CE (health plans, clearinghouses, and providers)
• HIPAA provide standards for the access, disclosure, transmission, and retention of
PHI, and created a national baseline for health information Privacy and Security. At the
and Answers (A+ Guaranteed)
• HIPAA resides in which CFR section? -✓✓45 CFR sections 164.102 through 164.534
https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164
• What are the subparts of HIPAA part 164? -✓✓HIPAA - 45 CFR 164, subparts:
Subpart A - General rules
Subpart C - Security
Subpart D - Breach notification
Subpart E - Privacy
https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164
• How do you determine if an organization is a "Covered Entity"? -✓✓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. -✓✓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 -✓✓4. Contract arrangement with FEDEX
carrier
• What is Gramm-Leach-Bliley Act (GLBA)? -✓✓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? -✓✓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? -✓✓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? -✓✓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.
,https://www.hhs.gov/hipaa/for-professionals/faq/315/when-does-a-covered-entity-have-
discretion-to-determine-covered-
functions/index.html#:~:text=For%20example%2C%20a%20hybrid%20entity,hybrid%20
entity's%20health%20care%20component.
https://privacyruleandresearch.nih.gov/pr_06.asp
• The transmission of information between two parties to carry out financial or
administrative activities related to health care is called: -✓✓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? -✓✓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. -✓✓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 -✓✓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. -✓✓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. -✓✓
• Except for TPO, list two examples where a CE requires an authorization to
use/disclose PHI -✓✓1. Sales and marketing
2. Psychotherapy notes
• How do you determine if an entity is subject to HIPAA? -✓✓By understanding the
applicability (healthcare component), entities that transmit health information and fall
under the 3 types of CE (health plans, clearinghouses, and providers)
• HIPAA provide standards for the access, disclosure, transmission, and retention of
PHI, and created a national baseline for health information Privacy and Security. At the
