A HIPAA Authorization allows you to give another person access to your medical records and allows your physician to update the person you choose on your medical condition. The federal patient privacy laws prohibit physicians from sharing your medical information in many situations without your authorization. Without the HIPAA Authorization Form, the privacy rules may interfere with a person relying solely on a power of attorney to take care of your financial affairs during your incapacitation.
Further, some powers of attorney, (e.g. springing power of attorney, medical power of attorney) are only effective when you become incapacitated. But how will your agent learn if you are incapacitated? For example, the person you name in a medical power of attorney can only make healthcare decisions for you when you become incapacitated (and the physician records it in your medical records). However, the agent will not know if you are incapacitated if the physician will not tell them your medical condition and they cannot have access to your medical records. The HIPAA Authorization Form allows your agent to receive the medical information from your physician and/or medical records. It can also allow your physician to discuss your medical condition with your children, even if you give the medical power of attorney to your spouse.