NC S375

Establishes the North Carolina Health Information Exchange Act to create a voluntary, statewide health information exchange (HIE) network for secure electronic transmission of patient health information among healthcare providers, plans, and clearinghouses in compliance with HIPAA.

Designates the North Carolina Health Information Exchange (NC HIE) as a nonprofit corporation to oversee and administer the network, requiring it to enter into business associate contracts and participation agreements with covered entities and qualified organizations.

Grants individuals a continuing right to opt out of the HIE Network on an ongoing basis, with opt-outs enforced prospectively and prohibits covered entities from denying treatment based on opt-out decisions.

Permits disclosure of protected health information of individuals who have opted out only in emergency medical situations where the treating provider reasonably believes an emergency medical condition exists and HIE information could assist in diagnosis or treatment.

Subjects covered entities that violate the law to civil and criminal penalties under the HITECH Act, disciplinary action by licensing boards, and other remedies available under state or federal law; becomes effective October 1, 2011.