Tuesday, December 8, 2009

How does the Small Business Administration definition change affect the HIPAA definition?

Question: How does the Small Business Administration definition change affect the HIPAA definition?

Answer : The Small Business Administration has changed its definition of a “small business concern” from an entity that receives less than $5 million in receipts annually to an entity that receives less than $6 million.
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This change does not affect the HIPAA definition. While HHS relied on advice from the Small Business Administration in developing its definition of a small health plan, it did not formally adopt the Small Business Administration definition as the definition for HIPAA purposes. For HIPAA purposes, a small health plan remains an entity that has receipts of $5 million or less per year.

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