subject: What Is Hipaa? [print this page] The purpose of the HIPAA is to develop the efficiency and effectiveness of health care system, continuity and portability of health insurance coverage in any individual and group markets, and the capability to offer consequences to people that don't apply with the rules clearly affirmed within the Act.
The Health Insurance Portability and Accountability Act secures health insurance coverage for employees and their families if they lose or change their occupations. HIPAA as well endorses the use of health savings accounts, enhancing access to long-term health coverage and care services. It also simplifies the management of health insurance. Because this act is a Federal Law, it limits pre-existing situation exclusions and allows enrollment when work or life events happen. This Act forbids bias against dependents based on their health status and employees. It also guarantees the renewability and accessibility of medical coverage to individuals and employees in general terms. HIPAA allow the portability for any group coverage from a carrier to another.
The HIPAA regulations entail guaranteed renewal and issue of insurance coverage, forbids plans from charging individuals with much higher co-payments, premiums, and deductibles based on medical status. Most pre-existing circumstances cannot be imposed when group coverage has been effective for twelve months and not longer than sixty-three days beyond. If such coverage is for less than twelve months, then pre-existing conditions can be imposed for that portion of twelve months that are not covered. The HIPAA institutes a maximum period of twelve months and can be imposed for pre-existing condition. Thus, individuals won't be penalized for looking for care.
The Administrative Simplification Act provisions required an institution of national standards. These standards are place forward for national identifiers for suppliers of health insurance, electronic medical transactions, and employers. The AS Act process as well addresses the privacy and security of health data to progress the effectiveness and efficiency of the state's health care scheme, encouraging the use of electronic data in medical care. These regulations were developed in the year 2002 to offer protection to individual health care records.
With the current amendments in place, health care records cannot be revealed without any written consent of a patient. It's also required that health care records must be kept under security and available only if it is in a "need-to-know-basis."
