Privacy Issues

[thepensionmaven]

We've had this issue arise a few times over the years and I was wondering how others handle the situation.

Employer/Sponsor approached with questions about the pension plan, either general or participant specific. Employer passes the participant on to the TPA rather than calling TPA himself.

In the past, we have told terminated participants that they should be asking their employer and if he does not know, he should come to us because he is the trustee and only he can give out this information for privacy issues.

Other TPAs I know have told participants that their E&O policy only allows us to deal directly with the Employer/Trustee and all questions must go through the Employer.

An insurance broker I deal with is telling me that this is a HIPAA issue and there is a $1000000 fine for giving out any information. Sounds good, but I don't think this applies to the situation.

What do you think and how do you handle situations like this?

[Chaz]

I can definitively say that HIPAA does NOT apply to this situation. HIPAA only applies to protected health information used or disclosed by covered entities.

[movedon]

I think TPAs talking to participants is terrible for a lot of reasons that aren't very satisfying to the participant you are explaining it to, and blaming your unwillingness to do it on vague things that are outside your control like "insurance requirements" or "the law" is a tried and true white lie to get them off the phone.

[ESOP Guy]

There is a cost issue. I doubt you priced in running a "call center" for your clients in the billing.

I would add I have found over the years if you work with the client on how to find the information in the SPD after a while they do learn to answer many of the basic questions themselves.

[Guest roseH3251]

I am interested in what the general consense is on this one, is there a privacy issue? Should they be referred?