I would like to submit an important thought about Business Associate
agreements.

While the rule allows an extra year to have the BA agreement in place with
the required clauses, I have talked with several attorneys that offer a
unique perspective:  That the covered entity becomes liable for the business
associate's actions from April 14th, 2003.  In other words, you don't HAVE
TO HAVE the agreement executed by the deadline per the rule, BUT the rule
still holds the CE to the letter of compliance, which includes disclosures
and privacy by all sub-contractors from DAY ONE!

It appears to me and those I've discussed this with, that this gives both
flexibility, and creates a trap of liability.  You can be conforming with
the BA agreement requirements, yet fail under disclosure or other privacy
requirements.

So we have been pursuing the development of a rider or attachment agreement
to cover the Privacy rule requirements overall for the BAs, while letting
the full BA agreement to be handled in due course within the extended time
line.  This strategy appears to correct the trap.

So my recommendation if spend the next 6 months and get the BA agreements
done, or at least get an addendum or attachment executed for safety.

I would be interested in discussion on this.

Tim McGuinness, Ph.D.
Consulting Specialist in Regulatory Privacy, Security, and Application
Compliance (HIPAA/ASCA/FDA/CMS-HCFA/ICH/ADA 508c),
[EMAIL PROTECTED] <mailto:[EMAIL PROTECTED]>

President,
HIPAA Help Now Inc.
[EMAIL PROTECTED] <mailto:[EMAIL PROTECTED]>
www.hipaahelpnow.com <http://www.hipaahelpnow.com/>

Executive Co-Chairman for Privacy,
HIPAA Conformance Certification Organization (HCCO)
www.hipaacertification.org <http://www.hipaacertification.org>

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-----Original Message-----
From: Grimes, Colleen [mailto:[EMAIL PROTECTED]]
Sent: Thursday, September 19, 2002 8:17 AM
To: [EMAIL PROTECTED]
Subject: Business Associate Agreements


Hope someone can give me feedback regarding any MCO's plans on executing
business associate agreements.  With the year extension that was provided, I
was curious what payers timelines are for executing their BA agreements.
Has anyone executed their BA agreements or are MCO's delaying until next
year?  What would be your rationale for either delaying or executing had the
date had not been extended?

Thanks,

Colleen Grimes

Colleen Grimes
AVP, HIPAA Compliance
757-473-2737 X3115
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