CHPC Practice Exam 2026 – Complete Guide to Healthcare Privacy Compliance Preparation

To claim compliance with regulatory requirements when a Business Associate is selling an individual's Protected Health Information (PHI), obtaining authorization from the individual is essential. The Health Insurance Portability and Accountability Act (HIPAA) sets stringent guidelines regarding the handling of PHI, especially when it involves selling this information.

Authorization is different from consent, as it explicitly outlines what information may be disclosed, to whom, and for what purposes. It must be written in plain language and signed by the individual, ensuring they are fully aware and agreeable to the sale of their PHI. This requirement serves to protect the privacy rights of individuals, putting them in control of who uses their health information and for what purposes.

While consent might imply agreement, in the context of HIPAA's requirements for the sale of PHI, it does not provide the same level of specificity and legal protection as authorization. The healthcare entity’s authorization or consent is not required for a Business Associate selling PHI unless specified by a contract; the individual’s authorization is what ensures compliance with HIPAA regulations. Therefore, having the individual's authorization is crucial for a Business Associate to make claims of regulatory compliance in relation to selling PHI.