The data security regulatory environment is changing at breakneck speed, and that, in turn, affects how you should approach privacy in healthcare marketing.  

If you fail to adhere to the industry’s privacy rules, you risk more than hurting your bottom line – you may be in for hefty fines, protracted lawsuits, and a considerable drop in customer trust. 

With this in mind, let’s take a look at the three most important sets of privacy rules you should be aware of as a healthcare product manufacturer. 

However, as you read through this article, don’t forget that this is just a very general overview. To ensure you’re up to speed with all applicable regulations, consider doing more in-depth research and consulting with a legal professional. 

Key Takeaways

• The Health Insurance Portability and Accountability Act (HIPAA), the General Data Protection Regulation (GDPR), and the California Consumer Privacy Act (CCPA) are three key sets of rules you should be aware of.
• Current privacy regulations may affect how you approach your database management, lead generation, and marketing campaign measurement.
• Getting expert help is paramount if you want to build a marketing strategy that is both successful and compliant with all applicable privacy rules.

Data Privacy in Healthcare Marketing: 3 Critical Sets of Rules You Must Be Aware Of

How good are you with acronyms? Does HIPAA, GDPR, or CCPA ring a bell – or are you confused already?

1. Health Insurance Portability and Accountability Act (HIPAA)

The federal Health Insurance Portability and Accountability Act of 1998 seeks to prevent the disclosure of patient health information without the person’s consent. 

To implement HIPAA requirements, the Department of Health and Human Services (HHS) issued two father rules – the HIPAA Privacy Rule, and the HIPAA Security Rule, which protects a subcategory of the information covered by the Privacy Rule.

The Privacy Rule

The Privacy Rule restricts the use and disclosure of protected health information (PHI) by the so-called covered entities. These include:

• Healthcare providers
• Health plans
• Healthcare clearinghouses
• Business associates 

As a healthcare product manufacturer, you fall under the category of business associates. These are people and organizations that use or disclose individually identifiable health information to provide services, functions, or activities for a covered entity, such as:

• Billing
• Data analysis
• Utilization review
• Claims processing

As a covered entity, you may only use and disclose protected information without the individual’s consent for the following purposes:

• Disclosure to the individual 
• Opportunity to object or agree to the disclosure
• Payment, treatment, and healthcare operations
• Incident to a permitted use and disclosure
• Activities in the public interest 
• Building a limited dataset for public health, research, or healthcare operations

The Security Rule

This rule affords additional protection to some of the information covered by the Privacy Rule, namely electronic protected health information (e-PHI). That extends to all individually identifiable health information that covered entities receive, transmit, maintain, or create electronically.

2. General Data Protection Regulation (GDPR)

The General Data Protection Regulation is a European law that entered into force on May 25, 2018. This is one of the most sweeping privacy laws globally. Its goal is to improve the privacy rights of EU citizens and give them more control over the information about them online, including personal health data.

So far, so good – but here’s where things get tricky: the GDPR has an extraterritorial reach and protects EU citizens this side of the pond, too. More precisely, the regulation covers any data gathered on EU residents anywhere in the world.

Among other things, this means you have an obligation to inform the relevant authorities about personal data breaches that pose a risk to EU citizens. If the risk is high, you have to notify the concerned individuals as well. 

Like HIPAA, the GDPR covers the entire life cycle of personal information, from collection and processing to storage and disposal.

3. California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act came into effect on June 28, 2018 – barely one month after the GDPR. And very much like the GDPR, the CCPA imposes stringent consumer protections, which make it arguably the strictest and most wide-ranging data privacy law in the U.S. 

Even though the CCPA is a California state law, it imposes requirements on all entities that gather Californians’ healthcare data anywhere in the U.S. The obligations to consumers come hand in hand with strong enforcement for non-compliance, including a private right of action for certain data breaches.

Before you start panicking, here’s some good news: if you’re already compliant with HIPAA, you may be exempt from the CCPA’s right-to-forget clauses. However, note that this only applies to protected health information. Any other personally identifiable information, such as billing records, will have to be “forgotten.” 

How Do These Privacy Rules Affect Your Marketing Strategy?

HIPAA, GDPR, and CCPA have wide-ranging repercussions for your healthcare marketing strategy. Here are some ways in which these regulations may affect your business:

Database Management

Your database should be fit for audit at all times. All records and personally identifiable information should be accurate, complete, well organized, and well managed. Keep in mind that you ought to be ready for both routine and surprise auditing.

Lead Generation

If you plan to pursue lead generation using inbound marketing post-CCPA and GDPR, make sure to put consumer consent at the core of everything you do. This includes:

• Using easy-to-understand language 
• Clearly explaining what data you’re collecting and why
• Providing a call to action or checkbox to enable users to give their informed consent
• Avoiding automatic opt-ins and pre-checked boxes

Marketing Campaign Measurement

The right to be forgotten may make it more challenging to measure your marketing campaigns, as you won’t be able to see the customers’ identities and how your ads are performing.

To make up for all that, consider the following:

• Using automation to fill in information gaps 
• Leveraging more personalized content to collect data with consent
• Creating incentives and loyalty programs

Data Privacy in Healthcare Marketing: Final Thoughts 

If what you just read feels overwhelming, it’s because it is. Data privacy laws are complex and constantly evolving to keep up with the evolution of modern technology.    

Unfortunately, that makes it incredibly hard to build a marketing strategy that is both effective and fully compliant with the applicable rules and regulations. There’s just so much to keep in mind – which is why it might be a good idea to get yourself some expert help. 

Contact us today to learn more!