Under what conditions can a Business Associate use or disclose PHI?

The reason the selected answer is correct lies in the legal framework established by the Health Insurance Portability and Accountability Act (HIPAA) regarding protected health information (PHI). A Business Associate is defined as a person or entity that performs certain functions or activities on behalf of a covered entity that involves the use or disclosure of PHI.

In order for a Business Associate to use or disclose PHI, they must adhere strictly to the stipulations outlined in the Business Associate Agreement (BAA). This legal contract delineates the specific circumstances under which the Business Associate is permitted to handle PHI, including compliance with applicable laws. Furthermore, the Business Associate must also follow any applicable laws regarding the use and disclosure of PHI, ensuring that they are acting within legal bounds to protect patient data.

This means that the Business Associate cannot arbitrarily decide to disclose PHI or operate outside the boundaries of the agreement and applicable law. Elements such as company policy or patient consent do not provide sufficient grounds for PHI disclosure, highlighting the necessity of adhering to the governing BAA and legal requirements for any actions involving PHI.