Definitions: HIPAA

Definition

In 1996, the U.S. passed the Health Insurance Portability and Accountability Act. There are two specific areas to the act: Title I spells out regulations to preserve health insurance coverage when people lose or change their jobs, Title II sets standards for healthcare information systems. It also includes a Privacy Rule that went into effect in April of 2003.

Business application

HIPAA has had the most impact on  medical and healthcare related businesses. Such companies must comply with a  long list of requirements including providing secure protection of medical information for all patients and clients, utilize standard formats via new programming codes, and have their new systems certified to show that they meet all the requirements spelled out in HIPAA.

Concerns

In the years following the HIPAA enactment, the medical research sector has taken a direct hit. Because of the strict privacy rules, researchers have been unable to do chart-based studies and follow-up patient surveys.

Also, some medical offices and doctors still do not fully understand all of the regulations and therefore are less open about disclosing information—even information that a patient may have a right to access.

There have also been concerns over the cost to completely comply with all of the regulations. Medical-based companies were required to institute new computer systems and practices within their offices, which required more money to install, train, and support. There has also been an increase in the amount of paperwork required for patients and clients, not to mention ongoing needs to stay abreast of any changes and ensure that offices remain in compliance.

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