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Health Insurance Portability & Accountability Act (HIPAA)

Health Insurance Portability & Accountability Act (HIPAA)
September 27, 2016 sdcpm

Health Insurance Portability & Accountability Act (HIPAA)

Congress passed the Administrative Simplification provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) to improve the efficiency and effectiveness of the nation’s Healthcare system.

HIPAA’s Administrative Simplification provisions require the Department of Health and Human Services to promulgate standards for the electronic exchange of certain administrative and financial transactions and for the security and privacy of health information. The Administrative Simplification provisions are implemented through a package of regulations, all of which apply to three distinct covered entities: health plans, Healthcare clearinghouses, and Healthcare providers who transmit health information electronically in connection with standardized transactions.

The Standards for Electronic Transactions regulation adopts standards for eight electronic transactions and for national code sets to be used in those transactions. The adoption of national code sets results in the elimination of local procedure codes. Proposed standards for additional transactions are expected in the future.

The Standards for Privacy of Individually Identifiable Health Information regulation establishes standards for the use and disclosure of protected health information. It also establishes some patient rights, including individuals’ access to records.

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