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FTC's Health Breach Notification Rule (HBNR)  Practical Law The Journal

FTC's Health Breach Notification Rule (HBNR) Practical Law The Journal

Reuters01-07-2025
Failing to secure or otherwise mishandling identifiable personal health information can present serious consumer harms and regulatory risks. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) imposes obligations to secure protected health information. However, these requirements only apply to some entities that handle health information.
HIPAA initially applied only to HIPAA covered entities, specifically, health care plans, health care clearinghouses, and most health care providers. The Health Information Technology for Economic and Clinical Health Act (HITECH Act), part of the American Recovery and Reinvestment Act of 2009 (ARRA), amended HIPAA to expand coverage to include certain service providers known as HIPAA business associates and established data breach notification requirements. ARRA and the HITECH Act also promoted a nationwide migration to electronic health records (EHRs) and the adoption of consumer-facing websites and apps known as PHRs.
This expansion:
Ensured that HIPAA obligations protect the PHRs that HIPAA covered entities manage, or their business associates manage on their behalf.
Still left a gap in data breach notification coverage because many non-HIPAA regulated organizations handle PHRs, including those that offer or operate consumer health apps and connected devices, like fitness trackers and various wearable technologies and monitoring devices.
Congress addressed this gap in the HITECH Act (42 U.S.C. § 17937), directing the FTC to promulgate the HBNR (16 C.F.R. §§ 318.1 to 318.9) for PHRs that fall outside HIPAA. The FTC initially issued the HBNR in 2009 and began enforcement in early 2010 (74 Fed. Reg. 42962-01 (Aug. 25, 2009)). In mid-2024, following a ten-year review, a related policy statement, and further rulemaking activities, the FTC updated the HBNR, clarifying its roles and responsibilities for the current environment, including consumers' widespread health technology and app usage (89 Fed. Reg. 47028-1 (May 30, 2024)).
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