What is HIPAA and Why Does It Matter?

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The Health Insurance Portability & Accountability Act (HIPAA) was passed in 1996 to protect patients’ sensitive health information from being leaked or shared without permission. HIPAA procedures are the key guidelines that all medical professionals must follow to protect private information. As records and billing have increasingly become electronic, HIPAA also regulates the necessary steps medical facilities must take to ensure their software remains secure. HIPAA achieves all this with three rules: Privacy: The Privacy Rule creates standardized definitions for protected health information, who must follow those standards, and how and when organizations can share protected health information (PHI). This dictates that health plans, healthcare providers, healthcare clearinghouses and any business associates in charge of transactions for these entities must follow HIPAA. Security: The Security Rule describes how those bound by HIPAA must protect any private health information. It includes guidelines for digital data. According to the Security Rule, it’s essential to keep all PHI confidential, truthful and accessible to those with authorization. Healthcare facilities and other entities bound by HIPAA must provide adequate protection and risk management for this data. In addition, all relevant employees must be trained to comply. Breach notification: HIPAA also requires entities responsible for PHI to remain accountable. All breaches must be properly reported to the authorities and affected individuals within 60 days. Violating HIPAA can result in employer fines, terminations or possible criminal charges.

What Is HIPAA?

What Is HIPAA?