Health Insurance Portability and Accountability Act of 1996 HIPAA - USA law

Health Insurance Portability and Accountability Act of 1996 (HIPAA) – U.S. Law
The Health Insurance Portability and Accountability Act (HIPAA) is a landmark U.S. federal law enacted in 1996. It was designed to improve health insurance coverage, reduce fraud and abuse in healthcare, and establish national standards for protecting sensitive patient information.

Key Purposes of HIPAA
Insurance Portability

Ensures workers can maintain health insurance coverage when changing or losing jobs.

Prevents discrimination against individuals with pre-existing conditions.

Accountability & Fraud Prevention

Introduces measures to combat waste, fraud, and abuse in health insurance and healthcare delivery.

Administrative Simplification

Standardizes electronic healthcare transactions.

Reduces paperwork and improves efficiency in healthcare systems.

Privacy & Security of Health Information

Establishes national standards for protecting Protected Health Information (PHI).

Grants patients rights to access and control their health data.

Major Rules Under HIPAA
Privacy Rule

Governs how PHI can be used and disclosed by healthcare providers, insurers, and clearinghouses (called “covered entities”).

Gives patients rights to access their medical records and request corrections.

Security Rule

Sets standards for securing electronic PHI (ePHI).

Requires safeguards such as encryption, access controls, and audit trails.

Breach Notification Rule

Requires covered entities to notify patients, the Department of Health and Human Services (HHS), and sometimes the media if PHI is compromised.

Impact
Strengthened patient trust in healthcare systems.

Improved data security in an increasingly digital healthcare environment.

Created a framework for compliance and penalties for violations

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