The health insurance portability and accountability act (hipaa) of 1996 establishes federal standards protecting sensitive health information from disclosure without patient's consent. Hipaa required the secretary to issue privacy regulations governing individually identifiable health information, if congress did not enact privacy legislation within three years of the passage of hipaa. Hipaa was intended to make health care in the united states more efficient by standardizing health care transactions
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To this end, hipaa added a new part c titled administrative simplification to title xi of the social security act, requiring all health plans to engage in health care transactions in a standardized way.
Hipaa sets strict standards for managing, transmitting, and storing protected health information
Hipaa applies to healthcare providers, insurers, and other organizations handling patient data, mandating safeguards to prevent unauthorized access or misuse of sensitive information.
