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.
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:
Under HIPAA, PHI is protected whether it is in electronic, paper, or oral form.
See also: What are the 18 PHI identifiers?
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.
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:
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
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.
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.
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
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.
“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.
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.
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.