HIPAA famously known as the Health Insurance Portability and Accountability Act and this federal law was first brought in the U.S by congress in 1996. It was created to provide data privacy and security provisions for the protection of health care information. HIPAA act was signed into law by President Bill Clinton on August 21, 1996, and it has five main components which are stated below:-


Type of HIPAA Compliance

Title I: HIPAA Health Insurance Reform

HIPAA health insurance reform came into existence to protect the health insurance coverage for individuals who lose or change their existing job. 

Title II: HIPAA Administrative Simplification

This title II reform directs U.S department of health and human services commonly known as HHS to set national codes and specifications for processing electronic healthcare transactions. This type II reform also directs health care companies to execute secure electronic access to health records and to stay in compliance with privacy regulations set by health and human services.

Title III: HIPAA Tax-Related Health Provisions

This reform includes tax-related provisions and specifications for health care.

Title IV: Application and Enforcement of Group Health Plan Requirements

 HIPAA’s title IV reform further defines health insurance reform.

Title V: Revenue Offsets

It includes requirements on company-owned life insurance and the cure of individuals who lose their U.S. citizenship for income tax purposes.

What is the purpose of HIPAA?

Earlier when this act came into existence the main purpose of HIPAA was to deliver uninterrupted health insurance coverage for individuals who lose or change their job. The other purpose of this act was to provide proper security to the confidential health records and information of the patients. 

Who is covered by and must follow HIPAA?

Health Insurance Portability and Accountability Act’s Privacy Rule applies to organizations that are considered HIPAA-covered entities, including health plans, healthcare clearinghouses and healthcare providers.

What information is protected?

All the information and details of individual that are held or transmitted by a covered entity or a business associate of health care are protected under HIPAA privacy rule. This information can be in digital, in paper work or oral form. Even the talks between doctors and nurses used for treatments are kept secret under this rule and individual or patient have all the rights to access this information at anytime. This personal health information of a person is called as PHI under the privacy rule. 

Any organization that fails to comply with HIPAA compliance can be heavily fined.