The Impact of HIPAA on Health Care

Since 1996, health care has been effected by the Health Insurance Portability and Accountability Act (HIPAA). HIPAA was signed into law to protect patient information and create new rules for health insurance plans and providers.

Understanding HIPAA

• HIPAA, pronounced “hip-ah”, is divided into seven “titles”. They focus mainly on insurance plan transfer and health information fraud, abuse, privacy and security.

Changing the Way Health Care Does Business

• Health care providers, insurance payers, claim companies and health care businesses are “covered entities” under HIPAA. They must follow HIPAA guidelines or suffer penalties that include significant monetary fines and imprisonment.

Creating New Roles

• All covered entities are required to designate a “HIPAA Officer”. This new role oversees HIPAA compliance for each entity.

Defining New Terminology

• HIPAA defined new terminology like “protected health information”. PHI is “individually identifiable health information [IIHI] held or transmitted by a covered entity or its business associate, in any form or media.”

Impacting Health Information Privacy

• The “Privacy Rule” is part of HIPAA’s Title II. The rule requires the safety of PHI while also facilitating easy sharing of information for ongoing care and research.

Impacting Health Information Security

• The “Security Rule” also falls under Title II. It requires electronic patient health information (e-PHI) to be protected from loss, intrusion or inappropriate disclosure.