The Health Insurance Portability and Accountability Act or HIPAA, which was enacted by the US Congress in 1996, has introduced to sweeping changes in health care administration and information systems. HIPAA is a federal law that has been amended to the Internal Revenue Code of 1986 which intends to improve portability and continuity of health insurance; combat waste, fraud and abuse in health insurance and health care delivery; promote the use of medical savings accounts and improve access to long-term health care services and coverage; and simplify the administration of health insurance.
HIPAA is designed to standardize the way all health care organizations electronically exchange sensitive patient data and to protect patients from unauthorized disclosure of their medical records (whether paper or electronic). Under HIPAA, there are specific standards that all health care organizations are required to adhere to. These standards include an Administrative Simplification Title that is aimed at preventing health care fraud and abuse. Within this title, there are several laws and proposed standards including Electronic Health Transactions Standards, Privacy & Confidentiality Standards, Unique Health Identifiers, and Security & Electronic Signature Standards.
These HIPAA laws and standards directly apply to the following groups of health care entities: health plans, public and ...