The Health Insurance Portability and Accountability Act – or HIPAA is a vital legislation which affects the U.S. healthcare market. But some are wondering what is the purpose of the HIPAA? Healthcare pros frequently make a complaint concerning the constraints of HIPAA. Are the advantages of the law really worth the extra amount of work?
HIPAA first came into the scene in 1996. In its initial form, the HIPAA helped employees who were between jobs continue to get their medical insurance coverage. The legislation likewise demanded from healthcare institutions to execute measures to protect patient data from healthcare fraudulence, though it took many years to put the rules for doing so into writing.
HIPAA additionally developed a number of new standards that were meant to enhance the efficiency of providing services in the healthcare field. It required healthcare institutions to take on the standards to lessen the burden of paperwork. Code sets needed to be utilized together with patient identifiers, which aided in the effective transfer of healthcare data from one healthcare company and insurance company to another, streamlining eligibility verifications, billing, payments, and other healthcare procedures.
HIPAA likewise discourages the tax-deduction of interest on life insurance loans, enforces group health insurance requirements, and standardizes just how much may be saved in a pre-tax medical savings account.
HIPAA is a complete legislation integrating the requirements of a number of other legislations, such as the Public Health Service Act, Employee Retirement Income Security Act, and fairly recently, the Health Information Technology for Economic and Clinical Health (HITECH) Act.
HIPAA is now most commonly known for safeguarding the privacy of patients and making sure patient data is suitably secured, with the requirements put in by the HIPAA Privacy Rule of 2000 and the HIPAA Security Rule of 2003. The requirement to notify individuals of a breach of their protected health information started in the Breach Notification Rule in 2009.
The objective of the HIPAA Privacy Rule was to present limitations on the permitted uses and disclosures of PHI, stipulating when, with whom, and under what conditions, medical information may be shared. One more crucial purpose of the HIPAA Privacy Rule was to provide individuals access to their health information upon request. The objective of the HIPAA Security Rule is principally to make sure electronic protected health information (ePHI) is adequately secured, access to ePHI is controlled, and an auditable track of PHI activity is kept.
So, to sum up, what is the reason for the HIPAA? To boost efficiency in the healthcare field, to further improve the portability of medical health insurance, to safeguard patient privacy and privacy of health plan members, and to assure health data is kept safe and patients are informed of breaches of their personal health data.