In 1996, the health insurance portability and accountability act (HIPAA) was incorporated by the department of Health and Human Services. These rules and regulations have been designed so that they can safeguard the privacy of people with regard to their medical records. According to this act, personal information regarding the medical background of the patient cannot be revealed without any valid reason and this has brought about a sea change in the method of handling of health care information. The rules and regulations of HIPAA are applicable to a very broad spectrum of people. All kinds of health care plans as well as health care providers, health care clearing houses and billing companies are bound by the rules as well as regulations of this act. All the organizations, which come under the stipulation of this Act, are known as covered entities. Anyone who is even remotely associated with the field of health care will be bound by the rules and regulations of this act. This is also likely to affect people who make use of health care services. Companies, which offer medical transcription services and the employees of such companies, are not included under the “covered entities” of HIPAA. According to this ...