Health Insurance Portability And Affordability Act ( Hipaa )

1155 Words Oct 27th, 2014 5 Pages
Health Insurance Portability and Affordability Act (HIPAA)
Shoshana Weisberg
Binghamton University

Health Insurance Portability and Affordability Act (HIPAA)
President Clinton signed the Health Insurance Portability and Affordability Act (HIPPA) on August 21, 1996 (Hartley & Jones, 2014, Chapter 1). To understand what this act is, a definition of “portability” and “affordability” must be provided. Portability guarantees that an employee could obtain health insurance if he or she changed jobs (Hartley & Jones, 2014, Chapter 1). Affordability was to tackle the messy administrative system in health care going on at the time. This was addressed by developing the rules of privacy, security, transactions and code sets, and national identifiers (Hartley & Jones, 2014, Chapter 1). Meaning, HIPAA was created to improve efficiency and effectiveness of the health care system, protect the security and privacy of patients, and reduce high transaction costs in health care. Prior to HIPAA regulations all U.S. healthcare levels regarding patient information overlapped (Kumar, Henseler, & Haukaas, 2009, p. 188). At each patient care checkpoint (front office, doctor’s office, insurance company, etc.) all patient information is accessible to anyone, resulting in non-clinical persons receiving patient information. Currently, HIPAA ensures privacy to patients and if violated, the guilty person is subject to fines and possible revocation of their license.
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