Comprehensive Analysis of the HIPAA Act: Benefits and Drawbacks

The provided report offers a comprehensive overview of the Health Insurance Portability and Accountability Act (HIPAA) of 1996. It details the act's purpose: to enhance the efficiency of the US healthcare system by improving health insurance portability, combating fraud, and promoting savings accounts. The report is divided into two titles: Title I addresses health care accessibility, portability, and renewability, while Title II focuses on simplification in administrative functions. It outlines the act's evolution, including key rules such as the Privacy Rule, Transaction with Code Sets Rule, and Security Rule. The report further explores the positive effects of HIPAA, such as legal rights for patients to access and correct their medical information and the use of electronic medical records. It also acknowledges the negative impacts, including increased paperwork for clinicians and cautiousness in releasing protected health-related information. References are provided to support the information presented.

HIPAA Act
Health Insurance Portability- and- Accountability Act (HIPAA) - 1996
HIPAA (PL 104-191) is an act that is developed to promote the efficacy of the
health- care system of United States by improving probability with continuity of health-
insurance coverage, combat fraud and abuse and to promote savings accounts. The
main goal of this act involves making the health insurance policy easily accessible to US
people, protect their confidentiality with security for health-related informations and
guide health-related organizations to control their administrational costs (DHCS, 2017).
HIPAA is divided into two titles as: Title- I: Health care accessibility, portability as well as
renew-ability that deals with health-related policies. It involves protecting the coverage
for health- insurance when an individual changes or resigns his/her job and addressing
health issues including pre-existing problems (ASHA, 2017). Title- II: Simplification in
administrative functions (Preventing Health-related fraud- and/or abuse) that involves
providing privacy with security for health-related informations, improving electronic
standardizing methods for transferring health-related information and providing unique
identification for providers (Data- Guard, 2017).
HIPPA act that was originally called as ‘Kennedy- Kassebaum’s Bill’ consists of a
set of rules and regulations and has become an act in 1996. HIPAA act was passed by
Congress in Aug’ 1996. Its standards for regulating electronic exchange of health-
related informations, its privacy as well as security were finalized by the health with
human services department of U.S. in 2002 (Data- Guard, 2017). These regulations
apply to health- related plans, policies, and clearing- houses and to all the health-
related professionals, who were responsible for transferring health- related informations
into electronic data. The first aspect of HIPPA was the Privacy- rule that was finalized in
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HIPAA Act
1999. Then, the ‘Transaction- with Code sets rule’ was finalized in 2000, followed by the
‘Security rule-sets’ and the ‘National- providers identifier’ (health- professionals) or
‘Unique- identifier’ rules. Lastly, the ‘Enforcement rule-set’ was finalized in 2006.
The interim final rule on Administrative- simplification: Enforcement rule was finalized in
2009 with penalty rules for violations from $100/ violation to $50,000/ violation (Data-
Guard, 2017). The final rule (2013) was issued to enhance and clarify the interim rule as
well as to enhance the violation’s definition.
HIPPA has created greater changes in the history of U.S. health system. It has
enforced implementation of medical- record scanning which is of HITECH compliant that
involves scanning all the patient charts, organizational files, medical records, etc. The
national network has also offered optical- character’s recognitions with red-action offer
(Data- Guard, 2017). It also facilitates storage of medical records by their pre-screened
network. It enforces use of electronic- medical- records system which is simpler and
cost-effective.
HIPPA act has posed many positive effects in U.S. health-related systems. It has
given legal rights to the consumers/patients to visualize; copy or correct their own
medical informations. It has helped the employees by preventing the organizations to
access and use their personal informations in employment decision- making (Andrews,
2017). It has also enabled the employees with pre-existing conditions to alter their jobs
based on their conveniences; without fearing about their health issues; under this newer
employee’s health-related plan. But, HIPPA has lead to some negative effects. It has
increased the burden of paper-work for clinicians. It has also spawned mini companies
with consultants (who help health- related personnel) to comply with act’s provisions.
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HIPAA Act
Moreover, the health- related professionals have become more cautious of releasing
protected health- related informations. E.g.: few clinicians’ office even refuses to send
mail for any investigational tests result, asking consumers/ patients to come personally
to get their reports, etc. Few hospitals need clinicians to prepare written requests in their
letter-head for patient’s informations, even if the law allows them to provide information
through phone (Andrews, 2017).
Reference
Andrews, J.M. (2017). What Are Some Pros & Cons of HIPAA. Retrieved from
http://www.livestrong.com/article/302080-how-health-care-costs-lower-with-
healthy-diet-exercise/
ASHA-American speech language hearing association. (2017). Health Insurance
Portability and Accountability Act. Retrieved from
http://www.asha.org/practice/reimbursement/hipaa/
DataGaurd. (2017). The History of HIPAA & The Consequences of A HIPAA Violation.
Retrieved from https://www.recordnations.com/articles/history-hipaa/
DHCS- California department of health care services (2017). Health Insurance
Portability and Accountability Act: California department of health care services.
Retrieved from http://www.dhcs.ca.gov/formsandpubs/laws/hipaa/Pages/1.00
WhatisHIPAA.aspx
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