The Health Insurance Portability and Accountability Act of 1996

Health insurance is the best way to protect the health of you and your family. Health insurance gives you financial peace of mind in the event of a medical emergency or serious illness, and health insurance allows you to maintain your good health through regular checkups and preventative care. In 1996 Congress passed the Health Insurance Portability and Accountability Act (HIPAA) providing two types of health insurance protection. The first regulates the scope and availability of group health insurance plans and certain individual health insurance policies. The second covers prevention of fraud and abuse, reform of medical liability, simplifying administrative rules and privacy protection for health information.

Title I of HIPAA

Title I amended three separate areas of health insurance protection – the Employee Retirement Income Security Act, the Public Health Service Act and the Internal Revenue Code. HIPAA’s Title I mostly affects group health insurance and ensures anyone who was previously covered under qualifying group or individual health insurance when changing or losing a job. Title I also offers some protection against health insurance exclusions for preexisting conditions.

Title II of HIPAA

Title II mainly covers offenses related to medical care and provides for both civil and criminal penalties. Title II underwent an addition in 2003 when the Privacy Rule went effect. This rule gives patients more control over health information, regulates health records and provides safeguards for the privacy of patient’s health information.

HIPAA’s Title II has led to five Department of Health and Human Services rules: Administrative Simplification: the Privacy Rule, the Transactions and Code Sets Rule, the Security Rule, the Unique Identifiers Rule, and the Enforcement Rule.

Of course you must have health insurance to enjoy the benefits of the Health Insurance Portability and Accountability Act. When buying any type of health insurance it is important to take the time and compare health insurance plans to determine what best fits your health care needs.

Did you know? Violators of patients’ health privacy rights can face both civil and criminal penalties.

Takeaways:

1. Most group health insurance and certain individual health insurance plans are covered by HIPAA
2. Title I can help you when you either change employers or lose a job.
3. The Privacy Rule added to Title II in 2003 protects the confidentiality of your medical information.

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