›› A Guide to HIPAA

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was enacted by the US congress to stream line the US health care system which was facing utter chaos in the mid 90s. With a multitude of insurances each with their own formats it made life hell for patients in getting their health insurance claims. HIPAA introduced the much required sweeping changes in insurance and medical administration and their information systems. HIPAA being a federal law that was amended to the Internal Revenue Code of 1986 intends to provide improved portability and continuation of health insurance covers; combat system introduced waste, abuse and fraud in medical insurance and health care delivery programs; HIPAA promoted the use of the new concept of medical savings accounts and aimed at improving  access to long-term medial care services and insurance coverage; and aimed to simplify the overall  administration of medical insurance.

HIPAA has standardized the manner and way in which all the covered entities under the HIPAA interact with each other and exchange patient data electronically. Over 400 forms of claim submission were reduced to a single EDI form by HIPAA is a huge achievement in itself. The exchange of patient's data in a secured electronic format ensures that the required privacy security standards are met. Patients are protected from unauthorized use of their medical records and information considered private under HIPAA.

HIPAA has laid strict procedures and specific standards which need to be implemented by all the covered entities aimed at preventing fraud and abuse of medical information. It has prescribed the confidentiality and privacy standards, Unique Identifies and codes for Health care provides and expenses codes, Digital Signature standards, Standards for storage of Health related transactions electronically. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) standards are very stringent in nature and attract sever penalties in case of violations.