HIPAA

HIPAA

Introduction

HIPAA refers to a federal statute, the Health Insurance Portability and Accountability Act, passed by Congress in 1996. Prior to the enactment of HIPAA and its Privacy Rule, confidentiality of health care information was protected by a patchwork of state statutes; the common law right to privacy, enforced by tort actions for invasion of privacy; and the ethical requirements of confidentiality assumed by all health care professionals, violations of which could lead to discipline imposed by state licensing boards. However, there were numerous and recurring reports of confidentiality breaches (Rhodes, 2011).

Discussion

The purpose of writing this paper is to give readers an idea about HIPAA, its role in the health sector and the importance.

Principal Goal

The principal goal of HIPAA was to allow portability of health insurance, that is, to permit employees to take their health coverage with them when they change employers. The law contained several other provisions related to health care, however, the most notable being one related to privacy of health information. The statute created the authority for extensive regulations in three areas. First, it mandated regulations creating a national standard for health care privacy, applying to all health care providers that transmit information electronically. The second area was electronic and computer security. Rules were developed that created consistent standards for all computers that contain information that is identifiable and relates to a person's health or medical treatment. The third area relates to the processing of medical claims for payment and requires the use of a uniform set of identifiers and transaction codes for all providers and health insurers in processing claims for reimbursement (Newby, 2009). This area is intended to achieve greater efficiency and cost-effectiveness in the processing of health care claims.

Legislation Development

During the development of the HIPAA legislation, congressional hearings were held, and extensive comment was received by Congress on the subject of privacy of patient care information. In the hearings, individuals testified about problems they had experienced when information about their health status or medical treatment was shared without their authorization. Particular concern was focused on electronic transmission of health information and the use of fax, cellular telephones, e-mail, Internet communications, and database management. This testimony led Congress to address, through statute and, subsequently, the Department of Human Services, through regulation, the preventable improper disclosure of information and inappropriate access to information. One of the key principles of the privacy rules enacted under HIPAA is that no information about an individual's medical condition or health care will ...