HIPAA Privacy Regulations Applicable to Cafeteria Plans?

[Christine Roberts]

Would an employer's in-house administration of a medical expense reimbursement component of a Sec. 125 plan be subject to HIPAA privacy regulations, when (and if) they go into effect??

[Guest RAJ]

Based on the information I have seen, I know TPA's that process medical reimbursement, under Section 125 (Flexible Spending Accounts), would be required to comply with these rules. The main reason being the substantiation of a reimbrsement claim may contain specific, personal, medical information regarding an individual. It would probably be in the best interest, for companies who self administer these plans, to adhere to the Privacy Ruling. However, you may already have some systems in place regarding employees who handle personal or confidential information regarding other employees (for example, internal payroll or human resources). I'm sure clearer guidance will be provided prior to effective date.