HIPAA is a law that ensures people have access to quality health coverage even when switching insurance providers. It prevents pre-existing conditions and higher premiums based on health information. HIPAA also protects private health care information and creates a uniform standard for its dispersal. The Department of Health and Human Services has the authority to create controls for the handling and transfer of sensitive information and to protect personal information and privacy. Patients are asked to sign a form acknowledging they’ve received the information and indicating who can and cannot review their health information.
HIPAA stands for Health Insurance Portability and Accountability Act. This law was introduced in 1996, but it wasn’t fully implemented until 2003. HIPAA was created to ensure that people between jobs had still have access to quality health coverage, as it used to be difficult or impossible to switch insurance providers without facing reduced coverage or exorbitant premiums. HIPAA was also intended to protect private health care information and create a uniform standard for the dispersal of personal information.
Before HIPAA, if a person lost their job and thus their insurance coverage, the next insurance company they used could classify their health needs as “pre-existing conditions.” This allowed the insurer to pay little or nothing for the services needed to remedy those conditions, despite the fact that the customer was paying for the insurance. For example, if a person was taking prescription medicines for high blood pressure on a regular basis, the new insurer might refuse to pay for his or her medications under the pre-existing policy, but the premium would remain the same, often for at least a year.
By preventing pre-existing conditions, requiring new companies to renew insurance policies, and preventing carriers from charging higher premiums based on health information, HIPAA plans to make insurance coverage “portable” between companies. This measure is intended to prevent people who change jobs from being forced to forego health insurance due to difficulties in obtaining coverage or due to insurmountable expenses.
With regards to HIPAA, accountability refers to the standards by which private health care information is exchanged between insurance companies, health care providers, pharmacies, employers, and patients. In the age of technology, the electronic transfer of information makes it very easy to violate a patient’s privacy, even inadvertently.
HIPAA gives the Department of Health and Human Services (HHS) the authority to create uniform controls for the handling and transfer of sensitive information, including the ability to determine which codes should be used to identify medical and administrative expenses. HIPAA also gives HHS the ability to create a national identification system for customers, health care providers, and insurance companies. Finally, HIPAA empowers HHS to implement procedures necessary to protect personal information and protect the privacy of health information.
If you’ve visited your doctor or a pharmacy, you’ve probably received your HIPAA booklet and been asked to sign a form acknowledging that you’ve received this information. These forms can provide space to indicate who can and cannot review personal health care information. While many people simply sign the form, it’s a good idea to read the information carefully first. You might be surprised how and with whom your private health information is shared.
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