The Health Insurance Portability and Accountability Act (HIPAA) is a bill that was developed by the United States Congress in 1996. The bill was first enforced in 1997. HIPAA was created to prevent abuse, fraud and waste of health insurance, health delivery, and other aspects of health. Because of the rules set by the act, the government also hoped that it would increase the level of health care given. This act was meant to make sure rules were followed, by distributing harsh punishments for not following HIPAA procedures.

3 Main Aspects Of HIPAA

– One main aspect of HIPAA is the rules put in place regarding abuse of the health care. After Heath Insurance Portability and Accountability Act (HIPAA) was put in place there was a steep decline in the fraud occurring in health care. This was a great feat for the HIPAA bill, but it wasn’t the most important. The formation of a system in which health care documents could be passed electronically is one of the greatest aspects of HIPAA.

– There is almost nothing more terrifying than someone gaining access to your health care information. Your health care records are sensitive material. You may have a condition that you would rather keep privately. HIPAA understood the need to keep patient records confidential. To maintain patient confidentially HIPAA created regulations for transporting this material electronically. These rules would not only take care of patient’s sensitive material, but create a way for information to be exchanged. Electronic exchange of patient records would be a much more efficient and cost effective way to transmit health care information.

– Another main section that is covered by the Health Insurance Portability and Accountability Act is insurance coverage. If you were employed for several years at a company and suddenly your employment status changed you would loose your insurance coverage. HIPAA was designed to protect employees in situations like this. Before HIPAA rules were introduced, employers would halt payments for insurance coverage for employee’s that lost their jobs or quit. HIPAA rules make it possible for employees in this type of situation to continue to have health care until they find a new job. Another important aspect of HIPAA is its regulations about pre-existing conditions.

Despite all the positive aspects of enforcing the Health Insurance Portability and Accountability Act there is a down side. The main issue that HIPAA imposes is the cost of making all systems compliant. All the extra paperwork needed to make an office HIPAA compliant caused medical practices to need extra help. From an economic stand point it was a great because it created new jobs. For medical companies it hurt their bottom line and cost them more employment wages.

Overall HIPAA was a very important bill that needed to be enforced. Insurance was guaranteed to those who lost their jobs and those with pre-existing conditions. Patients were also blessed with knowing that their records would be confidential. Although HIPAA was an added cost for many health care facilities it also reduced the amount of fraud. HIPAA was able to create a set of rules to regulate health care and it has proven to be successful thus far.

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