What is the purpose of the Health Insurance Portability and Accountability Act (HIPAA)?

The purpose of the Health Insurance Portability and Accountability Act (HIPAA) is fundamentally to improve health insurance portability and reduce fraud. HIPAA was enacted to protect individuals' health information and ensure that they can maintain health insurance coverage even when they change jobs or face other life changes that might disrupt their coverage. This portability aspect is critical, as it helps prevent gaps in health insurance that can negatively impact individuals’ access to care and financial stability.

Additionally, HIPAA includes provisions to reduce healthcare fraud and abuse by establishing national standards for the protection and privacy of health information. By setting these standards, HIPAA enhances the integrity of health information management, making it more difficult for fraudulent activities to occur within the healthcare system.

The focus on fraud reduction and portability underscores the intent of HIPAA to safeguard individuals while also ensuring that the healthcare system operates more effectively and fairly.