What is HIPAA?
HIPAA stands for Health Insurance Portability and Accountability Act. The act was passed in 1996 by US Congress for the benefit of workers and employees by way of improved “health insurance” policies and laws. The Act protects the medical insurance coverage of employees even after their job termination.
The act also aims to protect the family members of the workers who are covered under the basic worker’s health insurance.
So, exactly what is HIPAA? HIPAA act consists of two sections, the first part deals with the protection of the insurance coverage while the second phase deals with the employee’s right to maintain the privacy of significant information pertaining to his health insurance. This part of the act comes under the title of Administrative Simplification. And as its name suggests, it contains provisions that help a worker or employee in having the proceedings of his insurance policy simplified to a great extent. Initially, employees were made to undergo lengthy procedures to reactivate their medical insurance if at all they happen to quit their jobs or change their jobs.
The act also defines specific laws and regulations for insurance providers that help in protecting the reasonable interests of the insured. With the advent of internet networking and data transmission services, the issue of protection and privacy became more intense. Hence, the act has also laid down the terms and conditions to be followed by different types of electronic healthcare or medical transactions. Even though the HIPAA has set several rules, insurance companies can avail certain degree of exemption for well justified reasons. It is a vast topic and you can learn more on this at Whatishipaa.net.