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PROPOSED ORDINANCE
DESIGNATION OF COOK COUNTY AS A HYBRID ENTITY FOR THE PURPOSES OF COMPLIANCE WITH THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT
WHEREAS, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and its Rules (codified in the Code of Federal Regulations at 45 CFR parts 160 and 164, Pub. Law No. 10-191) impose privacy and security standards and requirements upon health plans, health care clearing houses, and health care providers that transmit any health information in electronic form in connection with standard transactions within the scope of HIPAA, otherwise known as Covered Entities; and
WHEREAS, Cook County ("County"), a unit of local government under the laws of the State of Illinois, is a single legal entity which conducts both Covered Functions and non-covered Functions; and
WHEREAS, the operation of the Cook County Health & Hospitals System ("CCHHS") and the County's patient arrestee program, self-insured health, dental, vision and pharmacy benefit plans as administered by the Department of Risk Management are Covered Functions subject to the HIPAA Privacy and Security Rules; and
WHEREAS, HIPAA allows a Covered Entity to designate itself as a Hybrid Entity when it performs both Covered and non-Covered Functions and to designate Health Care Components, which must comply with HIPAA; and
WHEREAS, a Hybrid Entity limits the Covered Entity's potential liability by requiring only those departments designated as Health Care Components to comply with HIPAA; and
WHEREAS, HIPAA requires any entity that performs a function on behalf of a Covered Entity or a Health Care Component of a Hybrid Entity, which involves the use or disclosure of protected health information ("PHI"), shall be required to execute a business associate agreement ("BAA"); and
WHEREAS, the Cook County Board of Commissioners desires to declare Cook County a Hybrid Entity, designates the County's Health Care Components; directs the Cook Cou...
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