Health Insurance Portability and Accountability Act of 1996 (HIPAA)

Federal law designed to limit exclusions for preexisting conditions, prohibit discrimination against employees and dependents based on their health status, guarantee that health insurance is available to small employers, and guarantee renewability of insurance to all employers regardless of size. However, people must go through the Consolidated Omnibus Budget Reconciliation Act program before using HIPAA. HIPAA allows portability in that it provides continuing insurance coverage when a person changes employment. It also simplifies administrative aspects of electronic health care transactions; mandates standard transaction code sets used by providers, plans, payers, and employers; and orders security, privacy, and confidentiality of patients’ health information via electronic transmission. HIPAA requires use of national identification systems for health care patients, providers, payers or plans, and employers. This act is also known as K2, Kennedy-Kasselbaum Bill, Kennedy-Kassenbaum Bill , and Public law 104-191 .

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