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(2) Population-based activities relating to improving health or reduction health care <br />costs, protocol development, case management and care coordination, disease <br />management, contacting health care providers and patients with information <br />about treatment alternatives and related functions; <br />(3) Rating provider and plan performance, including accreditation, certification, <br />licensing or credentialing activities; <br />(4) Underwriting, premium rating and other activities relating to the creation , <br />renewal or replacement of a contract of health insurance or health benefits, and <br />ceding, securing or placing a contract for reinsurance of risk relating to health <br />care claims (including stop-loss insurance and excess of loss insurance); <br />(5) Conducting or arranging for medical review, legal services and auditing function, <br />including fraud and abuse detection and compliance programs; <br />(6) Business planning and development, such as conducting cost-management and <br />planning-related analyses related to managing and operating the Plan, including <br />formulary development and administration, development or improvement of <br />payment methods or coverage policies; <br />(7) Business management and general administration activities of the Plan, <br />including, but not limited to: <br />Management activities relating to the implementation of and compliance <br />with HIPAA's administrative simplification requirements; <br />b. Customer service, including data analyses for policyholders; <br />(8) Resolution of internal grievances; and <br />(9) Due diligence in connection with the sale or transfer of assets to a potential <br />successor in interest, if the potential successor in interest is a covered entity <br />under HIPAA or following completion of the sale or transfer, will become a <br />covered entity. <br />13.2 Employer's Obligations under the Privacy Rule. Under the Privacy Rule, the Plan may not <br />disclose PHI to the Employer unless the Employer agrees to certain conditions. The Employer <br />agrees to the following conditions, thereby allowing the Plan to disclose PHI to the Employer. <br />The Employer will: <br />(a) Not use or further disclose PHI other than as permitted or required by the Plan document <br />or as required by law; <br />(b) Ensure that any agents, including a subcontractor, to whom the Plan provides PHI <br />received from the Plan agree to the same restrictions and conditions that apply to the <br />Employer with respect to such PHI; <br />(c) Not use or disclose PHI for employment related actions and decision unless authorized by <br />an individual; <br />(d) Not use or disclose PHI in connection with any other benefit or employee benefit plan of <br />the Employer unless authorized by an individual; <br />(e) Report to the Plan any PHI use or disclosure, that is inconsistent with the uses or <br />disclosures provided for, of which it becomes aware; <br />©2007 Hitesman & Associates, P.A. 33 Elk River Municipal Utilities <br />122707 Flexible Benefits Plan <br />