Health Information Privacy After Death

If you've ever visited a physician's office, you are aware of the federal HIPPA (Health Insurance Portability and Accountability Act) regulations, which protect the privacy of personally identifiable health information.

The HIPPA Privacy Rule extends to protect a deceased individual's information for 50 years after death. But how can a family member can obtain the private information of a deceased individual?

First, a health care provider may - but is not required to - disclose the information to an individual (such as a surviving spouse) if 1) the individual was involved in the deceased's health care or payment for the health care and 2) the deceased did not express a preference to keep the information from the individual.  Information shared must be related to the individual's involvement in care or payment.  If the entity knows that the deceased did not want information shared with the requester, it should not do so.

Second, the provider is required to release personal health information if requested by the decedent's personal representative (such as an executor named in a will or an adminstrator appointed by a probate court).    In this case, the legal representative steps into the shoes of the decedent.  Even if the decedent expressed a preference to keep that information from the representative, the entity must release the information.

More background information on the Privacy Rule's application to the health information of decedents is available from the U.S. Department of Health and Human Services.

Tax Reform Could Distinguish Between Pass-Through Businesses

In April, the Trump Administration announced a broad outline for tax reform which included proposals to cut the top individual tax rate to 35% and reduce the top business tax rate to 15%.   This reduced business rate would also apply to "pass-through businesses" - the majority of U.S. businesses who report income on their owners' tax returns rather than paying corporate income taxes.

However, Treasury Secretary Steven Mnuchin recently indicated that the reduced pass-through rate may not be available to service companies.

From the Wall Street Journal:

The idea is to create a special tax rate that is equal to or higher than the corporate tax rate but lower than the tax rate that applies to wages. That new rate would apply to pass-through business income but with boundaries to prevent it from being used by people whose income from service businesses closely resembles wages. 

...

Under a system like the one Mr. Mnuchin described, the owners of an accounting partnership would pay the individual tax rate on both their salaries and their partnership distributions. But the owners of a manufacturing partnership would pay the individual tax rate on their salaries and the special, lower rate on their profits.
...

It could be a challenge to define which companies get the lower tax rate Republicans are planning and which owners of companies would continue paying higher individual tax rates on their business income. Creating that distinction would cut against another Republican goal for the tax code: simplification. Possibly affected industries include law, engineering, medicine, finance, architecture and consulting.

Although many details are still lacking from the proposal, such a distinction - if included in the proposed legislation - could have a major impact on closely held businesses. The White House and Republican congressional leaders hope to reveal the full tax reform plan by the end of September.