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HIPPA InformationDocument Shredding and HIPAA Compliance In May 2003, the Raleigh News and Observer reported a nursing assistant was caught rifling through a convalescent center's trash cans. Allegedly, the nursing assistant was looking for patient information to fraudulently obtain credit cards. In August 2002, medical records from a Pennsylvania hospital (including lab and drug reports for hundreds of patients) were found scattered in the streets of Allentown. In response to incidents like these, Congress voted in 1996 to enact legislation to protect a patient's privacy. In the second quarter of 2003, the Health Insurance Portability and Accountability Act (HIPAA) went into effect. HIPAA mandates higher standards of privacy and security for health-related information. The law defines what type of health-related information is protected, and how and when that information can be transmitted among treatment providers, payment providers and administrators. The law states that healthcare providers must disclose how protected health information will be used, and in some instances, must first receive authorization from the patient. Healthcare offices, including private practices, nursing homes, health insurance offices, hospitals and state-supported clinics may all be subject to HIPAA regulations. They must provide consumers with an adequate description of their privacy practices. There are several easy ways that an office can increase the security of patients' protected health information: Use password-protected computer systems. Remove identifiers (names, birthdates, addresses, etc.) from as many documents as possible; instead, use client identification numbers that are matched to client names in a separate protected file. Shred all documents as part of the standard disposal process. HIPAA affects more than just healthcare consumers and providers. Businesses that provide legal, accounting, actuarial, consulting, accrediting and financial services to healthcare businesses are considered "business associates." All business associates that contract with HIPAA-compliant healthcare offices must agree to sufficiently safeguard information that is made available to them. If a business associate is in violation of this agreement, the healthcare organization may be required to terminate the contractual relationship, and possibly report the problem to the Department of Health and Human Services Office for Civil Rights. Now that the deadlines for both major compliance dates have passed, many medical offices are re-evaluating their programs and looking for more efficient and cost effective ways of meeting HIPAA standards. Outside shredding services are increasingly being called into question due to the high costs involved and whether they are truly "secure." Unlike medical facilities, shredding services are not held to federally mandated standards. If patient information is somehow released or misused by a shredding contractor, it is the contracting facility that is liable for damages under HIPAA laws. More and more compliance officers are deciding that a centralized shredding program with high-quality, industrial shredders is the smartest way to go. The initial equipment cost will be quickly offset by no longer having to pay the high (and always increasing) shredding service fees. And because the information is not leaving the facility, the increased confidence in security is tremendous. As HIPAA-compliant procedures become second nature to healthcare workers, in-house shredding will become the preferred method of document disposal in the medical field. ...read more

FACTA InformationNew FACTA Law Makes Shredding More Important Than Ever By now, almost everyone in America is familiar with the term "identity theft." Most businesses and a growing number of individuals are taking steps to protect themselves from becoming the next victim of America's fastest growing crime. Shredding documents for disposal has always been a vital step in preventing ID theft, but in June of 2005, the Disposal Rule section of the FACTA security law was enacted which makes shredding a necessity for businesses of any size, as well as individuals who employ even one person. FACTA Disposal Rule Defined Developed by the Federal Trade Commission, FACTA stands for Fair and Accurate Credit Transactions Act. Designed to minimize the risk of identity theft and consumer fraud, the Disposal Rule section of FACTA became law on June 1, 2005. The Disposal Rule states that any person who maintains or otherwise possesses consumer or employee information for a business purpose is required to properly dispose of the information. This includes information used, or expected to be used, to establish eligibility for credit, insurance, or employment. In addition, all information contained in or derived from consumer reports and records must be properly disposed to protect against unauthorized access to or use of the information. This part of FACTA was developed to cut down on the incidences of identity theft by, among other methods, restricting the ability of thieves to "dumpster dive" for valuable consumer information contained in discarded business records. The Disposal Rule goes on to say that all employers must take "reasonable measures" to protect against unauthorized access to or use of the information in connection with its disposal. These measures include: burning, pulverizing, or shredding of physical documents erasure or destruction of all electronic media The main difference between the FACTA Disposal Rule and previously existing security laws such as HIPAA, Sarbanes-Oxley, and Gramm-Leach-Bliley is that it does not affect a single industry - it affects every business and many households in America. Are You Affected by FACTA? If you employ someone, then the FACTA Disposal Rule affects you. Every employer in the US is required to properly and effectively destroy all documents and material that contain sensitive employee or consumer information. Specifically, this applies, but is not limited to: businesses that use consumer information in their everyday operations, such as banks, lenders, insurers, auto dealers, realtors, and medical facilities service providers that store consumer reports and information, such as record and information management companies service providers that destroy information, such as recyclers, waste management or technology disposal companies Importantly, the FACTA Disposal Rule is not limited to only companies or small businesses. It affects you as the homeowner as well. If you hire a nanny, tutor, yardman-anybody whose employment requires the exchange of sensitive information-you are responsible for the handling and disposal of that information. If you don't shred and information leaks out, you could be subject to civil or class-action lawsuits, as well as state and federal fines. Shredding is Your First Line of Defense Often, the first thing people think about when it comes to data security is their computers. Viruses, hacking - they're all over the news and on people's minds. It's true that hackers pose a threat, but so does your trash can. Firewalls and security programs will not protect you from "dumpster diving," which remains the most common means of collecting information used in identity theft. A quality shredder is always your first line of defense. Spiral's extensive line of shredders offers the perfect solution for protecting employers as well as employees. Convenient and easy to use, the cutting heads on every Spiral shredder is made of the highest quality tempered steel to ensure years of reliable service. Shredders provide the peace of mind that comes from knowing your materials are shredded at the source. Off-site services will come to your location and shred your sensitive materials, but that means endless expense and one more point of human contact (set of eyes) added to the disposal process. With an in house shredder at your business location or home office, you eliminate the potential for a wide range of security problems. Laws like the FACTA Disposal Rule are enacted to try and curb the identity theft epidemic. In 2004, 10 million people were victims of identity theft. Not only is the number of victims increasing, the number of identity thieves is increasing as well, and the threat they pose will only continue to grow. Getting back to the basics of simply destroying sensitive documents at the source with a reliable Spiral Binding shredder makes perfect sense - now more than ever. For more information about FACTA, visit the Federal Trade Commission (FTC) website at www.ftc.gov (search for "16 CFR part 682") ...read more