HIPAA Pros & Cons

The 1996 Health Insurance Portability and Accountability Act (HIPAA) established regulations for protecting health care coverage and increased the privacy of personal health care information. Overall, HIPAA has benefited consumers while increasing paperwork and costs for businesses.

Privacy

• Health care consumers have more privacy over who has access to their medical history and information. But health care companies have been required to intact new policies, increase paperwork and update computer systems to comply with privacy regulations.

Genetic Information

• Individuals cannot be denied health care coverage because of genetically based information such as susceptibility to certain types of cancer. Insurance companies must cover individuals with a known probability of higher health care expenses.

Emergency Situations

• Full access to a patient's health care history cannot be easily accessible because of privacy regulations. Privacy waivers are available for emergency care needs but are only applicable for limited periods of time.

Portability

• Individuals can change health care coverage because of job changes or life events without preexisting conditions being completely excluded for coverage. Insurance companies and employers must maintain a high volume of paperwork to adhere to HIPAA portability rules.

Electronic Records

• HIPAA encourages the use of electronic systems to maintain health records to ease portability and privacy compliance. Health service providers and insurance companies have expended money to create and support these systems.