HIPAA
What is HIPAA?
The Health Insurance Portability and Accountability Act (HIPAA, or Public Law 104-191) was passed by Congress in 1996. The primary goal of the law is to make it easier for people to keep health insurance, and help the industry control administrative costs.
HIPAA is divided into five titles or sections. Title I addresses portability. Portability allows people to carry their health insurance from one job to another so they do not have a lapse in coverage. It also restricts health plans from imposing pre-existing condition limitations on people who switch from one health plan to another.
Title II deals with fraud and administration. Title II is designed to:
- combat waste, fraud and abuse in health insurance and health care delivery
- promote the use of medical savings accounts
- improve access to long term care services and coverage
- simplify the administration of health insurance by standardizing the way the industry transmits health information and submit electronic transactions
- guarantee security and privacy of health information
Titles III, IV, and V have not been defined.
HIPAA requires the adoption of industry-wide standards for administrative health care transactions; unique identifiers for providers, employers, health plans, and individuals; health care procedures and diagnosis code sets; security measures; electronic signatures; and privacy protections.