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Health Insurance Portability and Accountability Act

Health Insurance Portability and Accountability Act (HIPAA) is the United States legislation that provides data privacy and security to safeguard medical information. HIPAA was created as a means of modernizing the flow of healthcare information, stipulate how personally identifiable information maintained by the healthcare and healthcare insurance industries should be protected from fraud and theft, and address limitations on healthcare insurance coverage.

The act consists of five titles:

  • Title I of HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs.
  • Title II of HIPAA, known as the Administrative Simplification (AS) provisions, requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans and employers.
  • Title III sets guidelines for pre-tax medical spending accounts.
  • Title IV sets guidelines for group health plans.
  • Title V governs company-owned life insurance policies.
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