HB2280 - 452R - House Bill Summary

House of Representatives

HB 2280

insurance claim fraud prevention act

Sponsors: Representative Marsh

X	Committee on Financial Institutions & Insurance
	Caucus and COW
	Third Read
	As Passed the House

HB 2280 authorizes interested parties, including insurers, to bring an action in the name of the state against individuals filing fraudulent insurance claims.

A strike-everything amendment will be offered in the Committee on Financial Institutions and Insurance with the following provisions:

· Provides an exemption for insurance institutions in compliance with the federal HIPAA requirements from state standards. Insurance institutions must, however, remain subject to the provisions of state law that are not contained in the federal HIPAA privacy requirements.

History

Laws 2001, Chapter 220 (SB 1288) contained provisions to conform to the standards of the Graham Leach Bliley Act (GLBA). The GLBA authorized banks and insurance companies to transact the others’ business and addressed the level of personal consumer information shared among these financial institutions. Since enactment of the SB 1288 (Arizona Insurance Information and Privacy Protection Act), the Department of Health and Human Services (DHHS) recently promulgated a rule for HIPAA Privacy Regulations that applied to health plans, clearing houses and health care providers that conduct business electronically. The federal regulations permit these groups to use protected health information for treatment, payment and health care operations, but require authorization from an enrolled member. The federal rule requires compliance by April 14, 2003. Health providers implementing the federal guidelines have encountered duplicitous standards with state and federal law. Therefore, legislation to address which standard is acceptable for compliance is necessary. The proposed legislation would establish that providers in compliance with the federal HIPAA privacy requirements are considered to be in compliance with state law.

Provisions

· Establishes that insurance institutions in compliance with the provisions of 45 Code of Federal Register Section 164 are deemed in compliance with state standards for insurance privacy protection.

· Specifies that insurance institutions must still be subject to the provisions of state law that are not contained in the federal HIPAA privacy requirements.

· to bring an action.

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· 45th Legislature