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Medical Billing Terms H: HIPAA Privacy Rule, Security Rule and HITECH

The HIPAA Privacy Rule sets national limits on how health information may be used and shared. This page defines it with the other HIPAA terms, HITECH, HL7, HMO, HRSA and Humana. Each entry gives a plain definition, why it matters, an example, and an official source. MCM South Medical Billing Service, LLC works only in mental and behavioral health billing.

Last reviewed: October 10, 2026Sources linked at each term
Billing Terms Glossary slide, Terms H: HIPAA Privacy Rule - MCM South Medical Billing Service, LLC
Pages in H
H-1H-2
On this page (18 terms)
  1. Hierarchical Condition Category (HCC)
  2. Highmark
  3. HIPAA
  4. HIPAA Authorization
  5. HIPAA Privacy Rule
  6. HIPAA Security Rule
  7. HIPAA Transaction Standards
  8. HITECH Act
  9. HL7
  10. HMO (Health Maintenance Organization)
  11. Home and Community-Based Services (HCBS)
  12. Home Plan
  13. Horizon Blue Cross Blue Shield of New Jersey
  14. Host Plan
  15. HRSA
  16. HSA (Health Savings Account)
  17. Human in the Loop
  18. Humana

How to use these HIPAA Privacy Rule definitions

Use this page as a quick reference for HIPAA Privacy Rule, from Hierarchical Condition Category to Humana. Each entry gives a plain definition, why it matters to a mental health practice, and an official source. When a rule changes by payer or state, the entry says so, so confirm HIPAA Privacy Rule details with the payer before you bill.

Checklist: put the hipaa privacy rule definitions to work

  • Check the hipaa privacy rule entries above before you send a claim that depends on them.
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Hierarchical Condition Category (HCC)

General (all payers)

Also called HCC; CMS-HCC

Definition
A grouping of diagnosis codes used in risk adjustment models to predict costs.
Why it matters
Some mental health diagnoses map to HCCs, making accurate diagnosis coding important.
Illustrative example
A diagnosis of major depressive disorder maps to an HCC in a model version.

Related termsRisk Adjustment Factor (RAF)Risk Adjustment

Reference sourceCMS (Centers for Medicare & Medicaid Services)checked 10/9/26

CategoriesQuality & Risk Adjustment TermsMedicare & Medicaid Terms

Highmark

Private payer

Also called Highmark Blue Cross Blue Shield

Definition
A Blue licensee company operating Blue plans in several states.
Why it matters
Its rules apply to its own plans.
Illustrative example
A provider reads Highmark's manual for its area.

Related termsBlue Cross Blue Shield Licensee

Reference sourceHighmarkchecked 10/9/26

CategoriesBCBS, UHC & Commercial Payer Terms

HIPAA

General (all payers)

Also called Health Insurance Portability and Accountability Act

Definition
A federal law that sets national standards for protecting health information and for electronic health care transactions.
Why it matters
Governs how practices handle patient data and how claims are sent.
Illustrative example
A practice signs business associate agreements with vendors that handle patient data.

Related termsHIPAA Privacy RuleHIPAA Security RuleBusiness Associate Agreement (BAA)Guide: HIPAA for billing

Reference sourceHHS (U.S. Department of Health and Human Services)HHS Office for Civil Rights (OCR)checked 10/9/26

CategoriesAudits & Compliance

HIPAA Authorization

General (all payers)

Also called authorization for release of information; release of information form; ROI

Definition
A HIPAA authorization is a patient's signed permission for a covered entity to use or disclose protected health information for a purpose that HIPAA does not otherwise allow.
Why it matters
It is required for most uses of psychotherapy notes and for many disclosures outside treatment, payment, and operations. It must contain specific elements and can be revoked.
Illustrative example
A patient signs an authorization so a school can receive a summary of her child's therapy.

Related termsPsychotherapy NotesTreatment, Payment, and Health Care Operations (TPO)Protected Health Information (PHI)DocumentationGuide: HIPAA for billing

Reference sourceHHS (U.S. Department of Health and Human Services)HHS Office for Civil Rights (OCR)checked 10/9/26

CategoriesAudits & Compliance

HIPAA Privacy Rule

General (all payers)

Also called privacy rule; PHI protection

Definition
The HIPAA rule that sets standards for use and disclosure of protected health information and gives patients rights over it.
Why it matters
Sets when information may be shared for treatment, payment, and operations.
Illustrative example
A practice shares only the minimum information a payer needs to process a claim.

Related termsProtected Health Information (PHI)Minimum NecessaryHIPAA Security RuleGuide: HIPAA for billing

Reference sourceHHS (U.S. Department of Health and Human Services)HHS Office for Civil Rights (OCR)checked 10/9/26

CategoriesAudits & Compliance

HIPAA Security Rule

General (all payers)

Also called security rule; ePHI safeguards

Definition
The HIPAA rule that requires administrative, physical, and technical safeguards for electronic protected health information.
Why it matters
Requires risk analysis and safeguards such as access controls and encryption.
Illustrative example
A practice conducts a security risk analysis annually.

Related termsProtected Health Information (PHI)HIPAA Privacy RuleGuide: HIPAA for billing

Reference sourceHHS (U.S. Department of Health and Human Services)HHS Office for Civil Rights (OCR)checked 10/9/26

CategoriesAudits & Compliance

HIPAA Transaction Standards

General (all payers)

Also called 5010; HIPAA EDI standards; standard transactions

Definition
The federally adopted formats for electronic health care transactions such as claims, eligibility, and remittance, currently based on X12 version 5010.
Why it matters
Payers must accept standard transactions, and providers who transmit electronically must use them.
Illustrative example
A clearinghouse sends claims in the standard 837 format.

Related termsX12Companion GuideHIPAAGuide: HIPAA for billing

Reference sourceX12HHS (U.S. Department of Health and Human Services)checked 10/9/26

CategoriesEDI & Clearinghouse TermsAudits & Compliance

HITECH Act

General (all payers)

Also called HITECH; Health Information Technology for Economic and Clinical Health Act

Definition
The HITECH Act is a 2009 federal law that promoted the use of electronic health records, strengthened HIPAA privacy and security rules, and created the breach notification requirements.
Why it matters
It is the source of the breach notification rule and higher HIPAA penalties. Practices meet its requirements through their privacy and security programs.
Illustrative example
A practice's breach response plan follows requirements that come from the HITECH Act.

Related termsHIPAA Security RuleBreach Notification RuleEHR (Electronic Health Record)Business Associate

Reference sourceHHS (U.S. Department of Health and Human Services)HHS Office for Civil Rights (OCR)checked 10/9/26

CategoriesAudits & ComplianceEHR & Healthcare Technology Terms

HL7

General (all payers)

Also called Health Level Seven International

Definition
A standards organization that develops health information exchange standards, including FHIR.
Why it matters
HL7 standards underpin many EHR integrations.
Illustrative example
An EHR sends an HL7 message to another system.

Related termsFHIRInteroperability

Reference sourceHL7 Internationalchecked 10/9/26

CategoriesEHR & Healthcare Technology TermsEDI & Clearinghouse Terms

HMO (Health Maintenance Organization)

General (all payers)

Also called HMO plan

Definition
A managed care plan that generally covers care only from a defined network and often requires referrals from a primary care provider.
Why it matters
OON therapy is usually not covered under an HMO, making network status critical.
Illustrative example
An HMO member seeks therapy from an out-of-network therapist and the claim denies.

Related termsPPO (Preferred Provider Organization)EPO (Exclusive Provider Organization)POS Plan (Point-of-Service Plan)Referral

Reference sourceCMS (Centers for Medicare & Medicaid Services)checked 10/9/26

CategoriesEligibility & Benefits

Home and Community-Based Services (HCBS)

Medicaid (state-specific)

Also called HCBS; 1915(c) waiver

Definition
Medicaid services delivered in the home or community instead of an institution, authorized through waivers or state plan options.
Why it matters
Many in-home and community behavioral health codes fall here, with strict documentation.
Illustrative example
A state HCBS program covers community supports.

Related terms1115 WaiverIn-Home TherapyMedicaidGuide: Medicaid managed care

Reference sourceMedicaid.govCMS (Centers for Medicare & Medicaid Services)checked 10/9/26

CategoriesMedicare & Medicaid TermsBehavioral Health Specific Terms

Home Plan

Private payer

Also called member's home Blue plan

Definition
Under BlueCard, the Blue plan that issued the member's coverage.
Why it matters
Determines benefits and cost sharing for out-of-area members.
Illustrative example
The home plan decides benefits for a traveling member.

Related termsHost PlanBlueCard Program

Reference sourceBlue Cross Blue Shield Associationchecked 10/9/26

CategoriesBCBS, UHC & Commercial Payer Terms

Host Plan

Private payer

Also called local Blue plan

Definition
Under BlueCard, the Blue plan in the area where the provider is located, which processes the claim.
Why it matters
The provider deals with the host plan on claims.
Illustrative example
A provider bills the local Blue plan for an out-of-state member.

Related termsHome PlanBlueCard Program

Reference sourceBlue Cross Blue Shield Associationchecked 10/9/26

CategoriesBCBS, UHC & Commercial Payer Terms

HRSA

Medicaid (state-specific)

Also called Health Resources and Services Administration

Definition
An HHS agency that supports health care access programs, including community health centers and workforce programs.
Why it matters
Relevant to safety-net providers and workforce funding.
Illustrative example
A health center reports to HRSA.

Related termsHHS (Department of Health and Human Services)SAMHSA

Reference sourceHRSAchecked 10/9/26

CategoriesMedicare & Medicaid TermsQuality & Risk Adjustment Terms

HSA (Health Savings Account)

General (all payers)

Also called HSA; health savings account

Definition
A tax-advantaged account paired with a high-deductible health plan that a patient can use to pay qualified medical expenses.
Why it matters
Patients may pay copays and balances with HSA cards.
Illustrative example
A patient pays a balance with an HSA debit card.

Related termsFSA (Flexible Spending Account)HDHP (High-Deductible Health Plan)Deductible

Reference sourceHHS (U.S. Department of Health and Human Services)checked 10/9/26

CategoriesPatient Financial Responsibility Terms

Human in the Loop

General (all payers)

Also called human review; human oversight

Definition
A design where a person reviews or approves AI outputs before they are used.
Why it matters
A common safeguard in billing and clinical uses.
Illustrative example
A coder approves suggested codes.

Related termsAI Coding AssistantAI Scribe

Reference sourceHHS (U.S. Department of Health and Human Services)checked 10/9/26

CategoriesAI & Healthcare Automation Terms

Humana

Private payer

Also called Humana Military

Definition
A national health insurer, strong in Medicare Advantage, and a TRICARE contractor in some regions.
Why it matters
Has its own network and rules.
Illustrative example
A provider checks Humana's provider portal.

Related termsMedicare AdvantageTRICARE

Reference sourceHumanachecked 10/9/26

CategoriesBCBS, UHC & Commercial Payer Terms

Quick answer: HIPAA Privacy Rule

What is the HIPAA Privacy Rule?

The HIPAA rule that sets standards for use and disclosure of protected health information and gives patients rights over it. Sets when information may be shared for treatment, payment, and operations.

Frequently asked questions: HIPAA Privacy Rule

What is the HIPAA Security Rule?

The HIPAA rule that requires administrative, physical, and technical safeguards for electronic protected health information. Requires risk analysis and safeguards such as access controls and encryption.

What is a HIPAA authorization?

A HIPAA authorization is a patient's signed permission for a covered entity to use or disclose protected health information for a purpose that HIPAA does not otherwise allow. It is required for most uses of psychotherapy notes and for many disclosures outside treatment, payment, and operations.

What is an HMO?

HMO (Health Maintenance Organization) is a managed care plan that generally covers care only from a defined network and often requires referrals from a primary care provider. OON therapy is usually not covered under an HMO, making network status critical.

Related resources

Where MCM South works

MCM South serves psychotherapists and psychiatrists in ten states: Georgia, Massachusetts, Connecticut, Texas, Florida, New York, Colorado, Tennessee, North Carolina and Illinois.

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