Importance of Hippa

The Health Insurance Portability and Accountability Act of 1996 was put in to place to protect individuals from being denied medical coverage or losing their medical insurance in certain instances. In addition, it protects individuals by keeping medical records private.

Purpose

• The purposes of HIPAA are to ensure individuals have medical insurance after they leave an employer, to help with fraud, increase the use of Health Savings Accounts, and improve access to long-term care.

Pre-existing Condition

• Before 1996, health insurance providers were allowed to limit benefits or deny coverage due to preexisting conditions. HIPPA now prevents health insurance carriers from reviewing an individual's medical records any further than six months back. In addition, pregnancy can no longer be considered a pre-existing condition.

Medical Coverage

• A person or covered family member cannot be denied coverage through a group-based employer's medical insurance due to preexisting conditions, previous claims or genetic information.

Medical Records

• HIPAA also prevents any individual from checking into another individual's medical records.

Drawbacks

• HIPAA does not force employers to offer medical benefits, guarantee that a medical condition is covered by medical insurance or prevent an employer from having a waiting period before a person is eligible for benefits.