Following the post-COVID stimulus hangover in 2022, the bull market has continued to run. One of the key factors was the Federal Reserve’s decision to
College Bound — Hip, HIPAA, Hooray
Published Date : July 29, 2024
Congratulations, your son or daughter—or perhaps grandchild—recently got accepted to college, and soon is off to school in the fall. Together, you are probably discussing coursework and prospective majors and figuring out housing arrangements and meal plans. One important, but frequently overlooked, topic is what to do in case your child becomes incapacitated… now that they are over the age of 18. This whole issue has evolved over time as new rules and regulations have been put in place that are meant to protect privacy, but which—often unintentionally—complicate interactions between loved ones. In particular, the Health Insurance Portability and Accountability Act (HIPAA) really changed the landscape in 1996, requiring that extra proactive steps be taken in advance for parents to be able to stay involved, if necessary, with important health-related issues involving their “grown” children once they reach the age of majority—which is 18 in most states.
According to the Department of Health and Human Services, the HIPAA Privacy Rule “establishes national standards to protect individual medical records and other personal health information” and “requires appropriate safeguards” and “sets limits and conditions on the uses and disclosures that may be made of such information without patient authorization.” In some situations, a medical provider may choose to disclose some patient information to a parent—if it is deemed to be in the best interest of the young patient—but typically not. Strict privacy is the default position. And yet, a simple, signed (by the child) HIPAA “release” authorization would enable a caring parent to get involved if something terrible occurred. And the child could stipulate in advance how much information could ultimately be divulged—either making it broad, or possibly more limited, regarding things like possible sexual activity, drug usage, or other potential sensitive matters. Hence, if nothing else, a standard—and standalone—HIPAA authorization should be addressed by families at this stage of life.
In addition to the HIPAA authorization, it might also make sense to consider a few other related legal documents that would allow more complete parental involvement in various health and financial-related matters— should the need arise—including a healthcare directive for health matters and a durable power of attorney (POA) for financial matters. Depending upon the state, these will probably need to be signed in the witness of a notary public. The healthcare directive (also known interchangeably as a medical or healthcare POA) would appoint an “agent”—typically a parent—to make medical decisions on behalf of the child if he or she becomes incapacitated. The durable POA is more comprehensive, giving the appointee—again, typically a parent, or possibly some other trusted designated agent—the authority to handle business on the student’s behalf as necessary. In addition to potential incapacity, this could also involve times when the child is out of the country or otherwise unavailable—to pay bills or taxes, or access financial accounts.
Copies of the first two documents—the healthcare-related items—could be submitted by the child to their campus medical or administrative office. The third item does not need to be sent anywhere. It is kept as reference for financial purposes, and is presented (to the child’s bank, for example) by the parents, if ever necessary. These documents should also be scanned to a laptop or phone to have them easily accessible and remotely available. As always, each personal situation is unique and should be carefully examined with legal counsel; and extra consideration might also be warranted based on the state—and its laws—where the child is attending college.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
Other Posts By This Author
- – Fiscal Sponsorship for Charity
- – Risky Business
- – Emotional Rescue
- – Children in Cars Getting Coffee… or Anything Else
Related Posts
Recent Posts
