On January 22, 2003: I’ve heard about “Business Associate” and “Trading Partner” agreements and what is the difference between them?
(A) Each is related to a different HIPAA component, with the Trading Partner agreement being related to the Transactions and Code Sets and the Business Associate agreement related to Privacy (there is yet another kind of agreement HIPAA includes, The Chain of Trust agreement, which is related to Security). The Trading Partner agreement defines how you intend to conduct electronic transactions. HIPAA doesn’t actually, through the regulations, define this as a contract or mandate the use of such an agreement. However, the Business Associate agreement is defined in HIPAA and it, in essence, mandates that you contract with your business associates to ensure that they adhere to much of what is required in the Privacy Rule. Therefore, not only are the kinds of agreements very different in terms of the HIPAA requirements, but they are both conceptually different.
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