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HIPAA requires health
providers, business
associates, and health plans
to adopt standards for
electronic administrative and
financial transactions.
Complying with HIPAA is
challenging because this
regulation affects so many
areas, including standards for
transactions, rules for data
privacy/security and more.
The Centers for Medicare &
Medicaid Services (CMS) is responsible for implementing
various unrelated provisions of HIPAA, therefore HIPAA
may mean different things to different people. HIPAA
requires health providers, business associates, and
health plans to adopt standards for electronic
administrative and financial transactions. Use of these
standards could generate billions of dollars in savings
for both the government and the private-sector
healthcare industry.
The Administrative Simplification provisions of the
Health Insurance Portability and Accountability Act of
1996 (HIPAA, Title II) require the Department of Health
and Human Services to establish national standards for
electronic health care transactions and national
identifiers for providers, health plans, and employers.
It also addresses the security and privacy of health
data. Adopting these standards will improve the
efficiency and effectiveness of the nation's health
care system by encouraging the widespread use of
electronic data interchange in health care.
Title I of the Health Insurance Portability and
Accountability Act of 1996 (HIPAA) protects health
insurance coverage for workers and their families when
they change or lose their jobs.
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