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<br />April I, 2003 <br /> <br />Kim Moore-Sykes <br />City of Centerville <br />1880 Main Street <br />Centerville, MN 55038 <br /> <br />STANTONj... <br />GROUP <br /> <br />Subject: Compliance with the Health Insurance Portability and Accountability Act (HIP AA) Administrative <br />Simplification Provisions <br /> <br />Dear Ms. Moore-Sykes: <br /> <br />Stanton Group is taking the necessary steps to comply with the Administrative Simplification provisions of HIP AA <br />by Apri114, 2003. In order to comply, Stanton Group has taken the following steps: <br /> <br />. A complete review of all policies and procedures that pertain to the handling of information deemed to be <br />Private Health Information (PHI), <br />. Staff training regarding the technical and physical aspects of HIP AA, including internal changes being <br />made to address the security and privacy requirements of HIP AA, <br />. Assignment of Molly Hanken as Stanton Group's HIP AA Privacy Officer, and Jeffrey Ackerson as <br />Stanton Group's HIP AA Contact Person. You may contact Jeff at hipaacompliance(al,stanton-group.com <br />with HIP AA related questions. <br /> <br />As a plan sponsor, you are required to enter into a written agreement with vendors or subcontractors who perform <br />administrative functions and access the individual health information of your employees. The claims processing, <br />enrollment, COBRA Continuation and other benefit services that Stanton Group provides on your behalf require <br />such an agreement, and we have drafted a Business Associate Agreement for your review and signature. <br /> <br />The following items, included in this packet, must be signed and returned to Stanton Group in the enclosed envelope <br />by April 10, 2003: <br /> <br />. Business Associate Agreement (please return both copies signed) <br />. Resolution of the Board (to adopt HIPAA changes into your current plan document) <br /> <br />The signed Board Resolution will allow us to create for you a Summary of Material Modification (SMM) that, <br />according to regulation, must be distributed to your employees for insertion into their Flexible Spending Account <br />Summary Plan Description (SPD). Your SMM will also include the HIPAA Privacy Notice. If, upon return of your <br />signed Board Resolution, it is determined that there are multiple SMMs already existing for your plan, it may be <br />necessary to amend and restate your plan. Any cost involved in providing the additional amend and restatement <br />services would be discussed with you prior to amending the Plan. <br /> <br />Stanton Group will return to you an executed copy of the Business Associate Agreement and SMM, which will <br />include the HIP AA Privacy Notice. <br /> <br />Additionally, as part of our effort to comply with HIP AA, clients who currently receive reports via e-mail from FSA <br />and/or COBRA will receive future reports in a password-protected e-mail that contains documents compressed with <br />Winzip technology. You will receive an e-mail from Stanton Group prior to Aprill4th with further instructions and <br />your assigned password. Report retrieval will be further enhanced in mid-2003 when we launch our enhanced Web <br />site, which will have a client portal allowing easy, secure access to send and retrieve reports and data. <br /> <br />If you have any questions, please do not hesitate to contact me at 763-278-4608 or rolmschenk(al,stanton-grouP.com. <br /> <br />Sincerely, <br /> <br />~%M ~cLL <br /> <br />Renee Olmschenk <br />Managing Director <br /> <br />Enclosures <br /> <br />3405 Annapolis Lane North Minneapolis, MN 55447 www.stanton-group.com 763-278-4000 fax 763 278-4007 <br />