What is HIPAA?

HIPAA stands for  the Health Insurance Portability and Accountability Act of 1996. It is  a federal law which was enacted on August 21, 1996. The Act contains the  following five sections, or titles:

Title I:  HIPAA Health Insurance Reform

Title II:  HIPAA Administrative Simplification

Title III:  HIPAA Tax Related Health Provisions

Title IV:  Application and Enforcement of Group Health Plan Requirements

Title V:  Revenue Offsets

HIPAA Title II directs the U.S. Department of Health and Human Services(HHS) to establish national standards for electronic health care transactions and national identifiers for providers, health plans, and employers. It also addresses the security and privacy of health data. Collectively these are known as the Administrative Simplification provisions.

The U.S. Department of Health and Human Services (DHHS) develops and publishes the rules pertaining to the implementation of HIPAA and standards to be used.

Major features of HIPAA:

§  Reduces administrative burden and cost for providers and payers

§  Creates a national standard for electronic transactions

§  Increases speed of financial transactions resulting in faster payment for services

§  Simplifies the exchange of information and reduces paperwork

§  Provides a more complete picture of healthcare and improves quality

§  Improves privacy and security of healthcare information.