No, the Health Insurance Portability and Accountability Act (HIPAA) primarily protects sensitive patient health information, also known as protected health information (PHI). While HIPAA covers aspects of healthcare billing, it does not specifically govern the protection of general financial information unrelated to healthcare services, such as credit card numbers or bank details.
However, if financial information is tied to healthcare payments or billing, and it identifies a patient or relates to their care, it may be considered part of PHI and therefore would be protected under HIPAA. Standard financial data outside of healthcare contexts is typically covered under other laws, such as the Gramm-Leach-Bliley Act (GLBA) or state-specific regulations.
What is PHI?
PHI is any information about an individual's health status, healthcare provision, or healthcare payment that can be linked to a specific individual. This can include:
- Medical records
- Billing information
- Test results
- Diagnoses and treatments
- Conversations between patients and healthcare providers
- Prescription information
Under HIPAA, PHI is protected whether it is in electronic, paper, or oral form.
See also: What are the 18 PHI identifiers?
Does HIPAA protect financial information?
The simple answer is that HIPAA does not protect general financial information. Instead, it focuses on protecting healthcare-related data that can be tied to an individual. However, financial information can become part of PHI when it is directly related to healthcare services or payment for healthcare services. In this sense, HIPAA's protection of financial data is conditional and context-specific.
Financial information as PHI
When financial information is linked to the payment of healthcare services, it becomes part of the individual's PHI and is therefore covered by HIPAA. For example, if a patient’s billing statement includes their name, treatment details, and the cost of services rendered, that billing information is PHI and subject to HIPAA’s protections. This could include details such as:
- Credit card or banking information used for healthcare payments
- Payment records for medical procedures
- Statements from insurance companies that link payments to specific treatments
In these cases, any data breach, unauthorized disclosure, or misuse of this financial information tied to healthcare can lead to serious legal repercussions under HIPAA.
See also: How to send HIPAA compliant billing inquiries
Financial information outside of healthcare context
On the other hand, if financial information is not tied to healthcare services, HIPAA does not cover it. For instance, a patient's general bank account details, credit score, or investment information would not fall under HIPAA's jurisdiction unless it was linked to a healthcare transaction.
This financial data would instead be governed by other laws, such as the Gramm-Leach-Bliley Act (GLBA), which regulates financial institutions, or state laws that protect consumer data.
Rules for sharing financial information in text messages
When it comes to sharing financial information in text messages, the rules depend largely on whether that information falls under the scope of HIPAA or other data protection laws. If financial information is tied to healthcare services or payments, it should be treated as PHI and handled accordingly.
HIPAA protection of financial data in text messages
If a text message contains PHI, including financial data related to a patient’s healthcare payments (e.g., a billing statement, insurance payment summary, or invoice for medical services), it must be protected under HIPAA. This means the text message must be encrypted, sent over a secure platform, and limited to authorized parties. Failing to secure financial data tied to healthcare services could result in a HIPAA violation, with hefty fines and penalties for the healthcare provider.
See also: The guide to HIPAA compliant text messaging
Financial data outside of PHI
If the financial information shared via text message is not linked to healthcare services—such as when a provider sends a generic reminder to make a payment or discusses payment options without mentioning specific healthcare services—it is not covered by HIPAA. However, it’s still good practice to ensure that such data is protected under other relevant privacy laws and to follow security best practices, such as encryption and secure messaging platforms.
HIPAA vs. GLBA
“The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 (15 USC §§ 6801 et seq.), was designed to regulate the disclosure and protection of nonpublic personal information (NPI) collected by a financial institution from an individual in order to obtain a financial product or service from the institution for personal, family, or household purposes,” writes the University of Colorado. Conversely, the Health Insurance Portability and Accountability Act (HIPAA) was enacted to protect the privacy and security of individuals' medical information. It regulates how healthcare entities use, disclose, and transmit Protected Health Information (PHI), ensuring that patients' sensitive health data remains confidential and secure.
FAQs
Is it HIPAA compliant to send financial information via text message?
Sending financial information linked to healthcare services via text message can be HIPAA compliant if certain safeguards are in place. These safeguards include encryption, secure messaging platforms, and ensuring that only authorized recipients can access the information. The patient must also consent to receiving texts containing such data.
What are the risks of sharing financial data via text message?
Risks include message interception, unauthorized access due to lost or stolen devices, and sending messages to the wrong recipient. These risks make it essential to use secure messaging platforms when sharing sensitive data.
Tshedimoso Makhene
