Yup, that's the case. The question is whether or your hard drive is protected from a criminal charges subpoena. The data is kept encrypted on the hard drive, but of course the authorities don't know what's on the hard drive until it's decrypted.
A covered entity may use or disclose protected health information without the written consent or authorization of the individual... in the situations covered by this section, subject to the applicable requirements of this section.
(a) Standard: Uses and disclosures required by law. (1) A covered entity may use or disclose protected health information to the extent that such use or disclosure is required by law and the use or disclosure complies with and is limited to the relevant requirements of such law.
This would seem to give court orders and criminal subpoenas the power to demand decryption of your hard drive regardless of whatever HIPAA data it contains.
