HIPAA is important because it ensures healthcare providers, health plans, healthcare clearinghouses, and business associates of HIPAA-covered entities must implement multiple safeguards to protect sensitive personal and health information.
What are the 4 main purposes of HIPAA?
The HIPAA legislation had four primary objectives:
- Assure health insurance portability by eliminating job-lock due to pre-existing medical conditions.
- Reduce healthcare fraud and abuse.
- Enforce standards for health information.
- Guarantee security and privacy of health information.
Why did HIPAA get created and why is it important?
In 1996 the Health Insurance Portability and Accountability Act was enacted. HIPAA was created for several reasons—mainly to solve issues dealing with continuing health coverage for people who lose their jobs, reducing health care fraud, creating industry-wide standards, and protecting private health information.
