HIPAA
The HIPAA law, also known as the Kennedy-Kausbaum Act or the Health Insurance Portability and Accountability Act of 1996, was designed to protect health insurance for workers and families when they change or loose their jobs. HIPAA says that group health plans cannot deny application for coverage based solely on health status, basically giving workers who change or lose jobs better access to health insurance even when they have pre-existing conditions. The one area which HIPAA law does not cover is when moving from one individual health insurance plan to another. Individual health insurers can simply turn away applicants who have chronic health problems.
HIPAA compliance has become a major issue for healthcare administrators because HIPAA security and HIPAA privacy violations carry civil and even criminal penalties if violated. HIPAA privacy regulations require doctors, hospitals, pharmacies and insurers to notify patients about the privacy rules, describe how their medical information may be used and explain patients' rights under the new guidelines. Patients are required to give written consent to release medical records to doctors, hospitals, health plans, etc. While HIPAA laws are meant to cut down on medical fraud and empower patients, it clearly can complicate life for both providers and patients.
After the April 20th, 2005 deadline for HIPAA security compliance, FierceHealthcare will continue to cover all aspects of the HIPAA law and keep you up to speed on HIPAA compliance issues.
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