On April 9, 2020, U.S. Department of Health and Human Services (“HHS”) issued a Notification of Enforcement Discretion (the “Notification”) regarding certain covered entities and business associates who choose to participate in the operation of a Community-Based Testing Site (“CBTS”) during the COVID-19 nationwide public health emergency. The Notification relaxes HHS’s enforcement of certain provisions of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”). More specifically, HHS will not impose penalties against covered health care providers and their business associates for violations of the HIPAA Privacy, Security, and Breach Notification Rules related to the “good faith participation” in a CBTS. The Notification is effective immediately but applies retroactively to March 13, 2020.

For the purpose of the Notification, a CBTS includes “mobile, drive-through, or walk-up testing sites that only provide COVID-19 specimen collection or testing services to the public.” Operation of a CBTS encompasses “all activities that support the collection of specimens from individuals for COVID-19 testing.”

Under the Notification, HHS’s enforcement discretion will apply only to covered health care providers and their business associates regarding activities connected to the operation of a CBTS. The Notification does not apply to non-CBTS activities performed by covered health care providers or their business associates. As such, there is still potential HIPAA liability for all other HIPAA-covered actions, unless otherwise determined by HHS. In addition, the Notification does not apply to health plans and health care clearinghouses when they are conducting health plan and clearinghouse operations. If a covered entity acts as both a health plan and health care provider, the Notification will apply only when the entity is acting in its role as a health care provider, and then only to the extent that it is participating in a CBTS.

Although covered health care providers and their business associates will not face penalties for HIPAA violations connected to the good faith operation of a CBTS, HHS still encourages them to implement reasonable safeguards for the privacy and security of individuals’ protected health information (“PHI”). According to the Notification, reasonable safeguards include:

  • Using and disclosing only the minimum PHI necessary except when disclosing PHI for treatment;
  • Setting up canopies or similar opaque barriers at a CBTS to provide some privacy to individuals during the collection of samples;
  • Controlling foot and car traffic to create adequate distancing at the point of services to minimize the ability of persons to see or overhear screening interactions at a CBTS — a six foot distance would service this purpose as well as supporting recommended social distancing measures to minimize the risk of spreading COVID-19;
  • Establishing a “buffer zone” to prevent members of the media or public from observing or filming individuals who approach a CBTS, and posting signs prohibiting filming;
  • Using secure technology at a CBTS to record and transmit electronic PHI;
  • Posting a Notice of Privacy Practices (“NPP”) or information about how to find the NPP online, if applicable, in a place that is readily viewable by individuals who approach a CBTS.
Photo of Anna D. Kraus Anna D. Kraus

Anna Durand Kraus advises on issues relating to the complex array of laws governing the health care industry. Her background as Deputy General Counsel to the U.S. Department of Health and Human Services (“HHS”) gives her broad experience with, and valuable insight into…

Anna Durand Kraus advises on issues relating to the complex array of laws governing the health care industry. Her background as Deputy General Counsel to the U.S. Department of Health and Human Services (“HHS”) gives her broad experience with, and valuable insight into, the programs and issues within the purview of HHS, including Medicare, Medicaid, fraud and abuse, and HIPAA privacy and security. Anna is co-chair of the firm’s Health Care Industry practice group.

Anna regularly advises clients on Medicare reimbursement matters, particularly those arising under Part B and the Part D prescription drug benefit. She also has extensive experience with the Medicaid Drug Rebate program. She assists numerous pharmaceutical and device manufacturers, health care providers, pharmacy benefit managers, and other health care industry stakeholders to navigate the challenges and opportunities presented by the Affordable Care Act.

Anna is a trusted adviser on health information privacy, security and breach notification issues, including those arising under the Health Insurance Portability and Accountability Act (“HIPAA”) and the Health Information Technology for Economic and Clinical Health (“HITECH”) Act. Her background in this area dates back to the issuance of the original HIPAA privacy regulations.

Anna’s clients depend on her to guide them through compliance with the Anti-Kickback statute, the Stark regulations, and other laws preventing fraud and abuse in the health care industry. Her deep knowledge of these laws has made her an important component of the firm’s representation of pharmaceutical companies and health care organizations under federal investigation or facing allegations under the False Claims Act. In addition, clients contemplating acquisitions in the health care sector rely on her to guide due diligence efforts.

Photo of Tara Carrier Tara Carrier

Tara Carrier is an associate in Covington’s Boston office, where she is a member of the Health Care and White Collar Defense and Investigations Practice Groups. Tara focuses her practice on representing clients in the life sciences and health care industries in a…

Tara Carrier is an associate in Covington’s Boston office, where she is a member of the Health Care and White Collar Defense and Investigations Practice Groups. Tara focuses her practice on representing clients in the life sciences and health care industries in a variety of regulatory and compliance matters, including fraud and abuse, health information privacy and compliance with HIPAA, promotion and advertising, market access, pricing and reimbursement activities, and other related areas. In addition, Tara has experience representing clients in government investigations and conducting targeted internal investigations covering a broad range of health care compliance issues. She also counsels clients on mitigating compliance risks and implementing and operating under HHS OIG Corporate Integrity Agreements.

Tara is an author of the U.S. chapter of a global treatise on drug pricing and reimbursement.

In addition to her life sciences practice, Tara maintains an active pro bono practice, with a particular focus on reproductive rights.