The majority of claims are submitted electronically these days. Paper claims are a rarity and are actually less secure because they are not protected while travelling to their destination. After processing, they are shredded to protect privacy (at my company the shredders come to us and shred right there in their shredding trucks in the parking lot. This prevents the possibility of PHI blowing down the highway should the truck malfunction or get in an accident. Protecting individuals PHI not only protects their privacy but their identity as well, as the claims include their name, address, sometimes their phone number, sometimes their social security number, as well as their diagnosis and the treatment or medication they are receiving.)

Any email regarding PHI has to be protected by encryption.

Just thought I'd add a bit of what I know.