| The Health Insurance Portability and
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| | to the following groups of health care
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| Accountability Act or HIPAA, which was
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| | entities: health plans, public and
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| enacted by the US Congress in 1996, has
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| | private payers, health care insurers,
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| introduced to sweeping changes in health
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| | HMOs, Medicare, Medicaid, group health
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| care administration and information
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| | plans, health care clearinghouses, any
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| systems. HIPAA is a federal law that has
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| | entity that facilitates the processing of
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| been amended to the Internal Revenue Code
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| | non-standard formatted health information
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| of 1986 which intends to improve
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| | and must convert the non-standard data
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| portability and continuity of health
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| | into standard transactions, or vice
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| insurance; combat waste, fraud and abuse
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| | versa, Health Care Providers, providers
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| in health insurance and health care
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| | who transmit health information
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| delivery; promote the use of medical
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| | electronically, providers who receive
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| savings accounts and improve access to
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| | individual health information, and
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| long-term health care services and
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| | providers who electronically maintain
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| coverage; and simplify the administration
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| | health information used in electronic
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| of health insurance.HIPAA is designed to
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| | transmissions between
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| standardize the way all health care
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| | entities.Non-compliance with HIPAA
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| organizations electronically exchange
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| | regulations may cause disruptions in an
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| sensitive patient data and to protect
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| | organization's day-to-day business
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| patients from unauthorized disclosure of
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| | processes, resulting in both tangible and
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| their medical records (whether paper or
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| | intangible costs. The most serious
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| electronic). Under HIPAA, there are
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| | implications of HIPAA non-compliance for
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| specific standards that all health care
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| | health care organizations include the
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| organizations are required to adhere to.
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| | inability to effectively conduct
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| These standards include an Administrative
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| | electronic business and the potential of
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| Simplification Title that is aimed at
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| | losing significant segments of business.
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| preventing health care fraud and abuse.
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| | The government also imposes some
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| Within this title, there are several laws
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| | sanctions on those who fail to comply
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| and proposed standards including
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| | with the regulations of HIPAA. The
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| Electronic Health Transactions Standards,
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| | penalty for failure to comply with
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| Privacy & Confidentiality Standards,
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| | regulations goes up to $100 per violation
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| Unique Health Identifiers, and Security &
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| | per person up to a maximum of $25,000 per
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| Electronic Signature Standards.These
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| | year.
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| HIPAA laws and standards directly apply
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