When a wellness program is offered as part of a group health plan, it is subject to HIPAA regulations. This means that any protected health information (PHI) collected from participants, such as data from biometric screenings or health assessments, is protected under HIPAA's Privacy and Security Rules.
A Journal of Managed Care Pharmacy study provides insight into the function of HIPAA, “Lawmakers sought to improve the efficiency and effectiveness of the health care system by encouraging the development of national standards and requirements for electronic transmissions of health information among health care providers, insurance companies, and other health care payers.”
Employers have to incorporate wellness programs into their group health plan's summary plan description (SPD) to ensure transparency and compliance. It includes explaining how PHI will be used and protected within the program. Employers also have to ensure that any vendors or contractors involved in the wellness program, like those conducting biometric screenings, comply with HIPAA standards through business associate agreements (BAAs).
The Affordable Care Act (ACA) clarifies HIPAA's nondiscrimination rules for wellness programs. The ACA allows for two types of wellness programs: participatory and health-contingent. Participatory wellness programs are generally available to all participants without requiring them to meet specific health standards, while health-contingent programs require participants to meet health-related standards to receive rewards.
Related: HIPAA Compliant Email: The Definitive Guide
No, corporate wellness programs that are not part of a group health plan do not need to comply with HIPAA. HIPAA applies to wellness programs only when they are offered as part of a group health plan.
Employers must update their summary plan descriptions (SPDs) to include wellness programs if they are part of a group health plan.
If a wellness program vendor handles PHI, a BAA should be entered into to ensure compliance with HIPAA standards