Number
021694
Version
Substitute 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution implementing requirements of the Health Insurance Portability and Accountability Act of 1996 in connection with the City of Milwaukee's Basic Health Plan; adopting Privacy Policies and Procedures for the administration of the Plan; authorizing a Notice of Privacy Practices; designating a Privacy Official and Privacy Contact; identifying employee positions with access to protected health information; and authorizing the execution of a Business Associate Contract with Wisconsin Physicians Service Insurance Corporation.
Analysis
This resolution implements actions required by federal regulations pursuant to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) in connection with the protection of the privacy of protected health information related to the administration of the City of Milwaukee Basic Health Plan. The resolution adopts Privacy Policies and Procedures for the administration of the Plan, authorizes a Notice of Privacy Practices, designates a Privacy Official and Privacy Contact, identifies employee positions with access to protected health information, and authorizes the execution of a Business Associate Contract with Wisconsin Physicians Service Insurance Corporation.
Body
Whereas, The City of Milwaukee operates a self-funded health insurance plan, the Basic Health Plan, for the purpose of providing health insurance benefits to certain employees and retirees of the City and their dependents; and
Whereas, The Health Insurance Portability and Accountability Act of 1996 (HIPAA) imposes certain requirements with respect to privacy pursuant to 45 CFR Parts 160 and 164 (the "Privacy Rules"); and
Whereas, The Basic Health Plan is a "health plan" as defined in 45 CFR section 160.103; and
Whereas, The Basic Health Plan (the "Health Plan") is a "Covered Entity" as defined in 45 CFR section 160.103; and
Whereas, The City of Milwaukee (the "Plan Sponsor") is a Plan Sponsor as defined in 45 CFR section 160.501; and
Whereas, Wisconsin Physicians Service Insurance Corporation (WPS) is currently under contract with the City of Milwaukee to provide services as claims administrator, utilization review agency, preferred provider network and prescription drug card program with respect to the Basic Health Plan; and
Whereas, WPS is a "business associate" with respect to the Basic Health Plan, as that term is defined in 45 CFR section 160.103; and
Whereas, 45 CFR section 164.504 requires the execution of agreements with business associates to protect the privacy of protected health information; and
Whereas, 45 CFR section 164.530 requires that the Basic Health Plan implement policies and procedures with respect to protected health information that are designed to comply with the Privacy Rules; and
Whereas, 45 CFR section 164.520 requires that the Basic Health Plan must provide notice of the uses and disclosures of protected health information that may be made, and of the individual's rights and the Basic Health Plan's legal duties with respect to the protected health information; and
Whereas, The Common Council of the City of Milwaukee wishes to take action to ensure that the Basic Health Plan is administered in compliance with the terms and conditions of the Privacy Rules; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that:
1. Designation of Privacy Official and Privacy Contact. Michael J. Brady, Employee Benefits Manager, or any successor to him in that position, is hereby designated as the Plan's Privacy Official pursuant to 45 CFR section 164.530 and as the Plan's Privacy Contact pursuant to 45 CFR section 164.520.
2. Identification of Individuals with access to PHI. Any individual holding one of the positions described in Exhibit A hereto are identified as persons who may, from time to time, have access to PHI with respect to the Basic Health Plan.
3. Restriction of Access to PHI. Access to PHI by the individuals identified in the preceding paragraph shall be restricted to plan administration functions (as provided in 45 CFR section 164.504) that the Plan Sponsor performs.
4. Privacy Policies and Procedures. The Privacy Policies and Procedures attached hereto are hereby authorized and adopted with respect to the administration of the Basic Health Plan.
4. Notice of Privacy Practices. The Employee Benefits Manager is authorized and directed to prepare a "Notice of Privacy Practices" as required by 45 CFR section 164.5320, and to cause such notice to be mailed to all individuals covered by the Basic Health Plan as named insureds, such mailing to occur prior to April 14, 2003. The Employee Benefits Manager is further authorized and directed to provide the notice to new enrollees in the Basic Health Plan at the time of enrollment, and to provide notice at such other times as may be required by 45 CFR section 164.520.
5. Training Program and PHI Safeguards. The Employee Benefits Manager, in consultation with the City Attorney, is authorized and directed to develop a privacy training program with respect to the requirements of the Privacy Rule, and shall require all individuals identified in Exhibit A who are members of the workforce related to the Basic Health Plan to receive such training prior to April 14, 2003. The Employee Benefits Manager, in consultation with the City Attorney, is further authorized and directed to develop appropriate physical, technical and administrative safeguards for the Health Plan's PHI as required by 45 CFR section 164.530(c).
6. Resolution of Issues of Noncompliance. Any complaints of noncompliance with the Privacy Rules shall be investigated by the Privacy Officer. Any violations of the Privacy Rules or the Privacy Policy shall subject an employee to discipline consistent with the applicable requirements of collective bargaining agreements, ordinances and City Service Commission rules.
7. Business Associate Agreement. In order to comply with the requirements of 45 CFR section 164.504, the Employee Benefits Manager is authorized and directed to enter into a Business Associate Agreement with WPS in the form attached to this resolution.
Requestor
Drafter
City Attorney
EHT:et:63843
March 4, 2003
1034-2002-2116:64371