HIPAA stands for the Health Insurance Portability and Accountability Act, a comprehensive federal law enacted in the United States in 1996, which is designed to safeguard the privacy and security of individuals’ protected health information (PHI) while also addressing issues related to healthcare access, portability of insurance coverage, and administrative simplification of healthcare transactions.
HIPAA serves a multiple purposes, with its primary objective being to safeguard the privacy and security of individuals’ protected health information (PHI) and to address various issues within the healthcare system. The law introduces strict regulations to ensure the confidentiality of PHI, prohibiting unauthorized access or disclosure of sensitive medical data. HIPAA aims to enhance healthcare access and the portability of health insurance coverage, enabling individuals to maintain coverage even when transitioning between jobs or insurance providers. It also addresses administrative simplification in healthcare by setting standards for electronic transactions, code sets, and unique identifiers, promoting efficiency and standardization in healthcare operations. HIPAA has had an impact on the healthcare industry, shaping the way healthcare organizations handle patient information and ensuring that individuals’ privacy and data security rights are upheld within the healthcare ecosystem.
