Question

What are the 4 components of Health Insurance Portability and Accountability Act and briefly describe.

Answer 1

Health Insurance portability and Accountability act :- HIPAA, or the Health Insurance Portability and Accountability Act, passed into law in 1996By the president Bill Clinton . HIPAA, was originally known as the Kennedy-Kassebaum Bill, is a set of regulations but it became law passed by the Clinton administration’s in 1996.The central idea of this law is to help people carry their health insurance while people change there job profile from one company to the another company , as well as sharing of medical records from one health care institution to another health care institution. It also includes protection of patients rights to medical privacy.

HIPPA ACT includes five different components of law, these laws are also termed as Titles. These titles involve the health care provider, health insurance plans , hospitals and doctors, violation of HIPPA ACT causes penalties to the offenders.

Title I: Focus on Health Care Access, Portability, and Renewability.:-

Health care Access , portability and renewability component help individual to continue health care coverage when switching to new job or buying new health insurance. This component give protection for individuals with already existing illness or disease, or any other related condition of the individual.

It limits the health insurance plans to deny the coverage of preexisting health insurance plan while individual is switching to a new employment or taking new health insurance plan.

Title II: Preventing Health Care Fraud and Abuse; Administrative Simplification; Medical Liability Reform:- Preventing Health Care Fraud and Abuse; Administration Simplification; Medical Liability Reform includes Making of policies to prevent abuse and fraud in health care, also to Improve the standards of Medicare, and establishing standards for the electronic transmission of information of patients health. This title also includes the administrative simplification for health care providers. This title also give the privacy and security of the patients protected health information. This title has five separate Rules, these rules are set up to ensure the efficiency of health care system: the Privacy Rule, Transactions and Code Sets Rule, Security Rule, Unique Identifiers or National Provider Rule, and the Enforcement Rule.

Title III: Tax-related health provisions governing medical savings accounts:- HIPAA’s Title III also known as “Tax-Related Health Provisions includes tax-related provisions and guidelines for medical care. Medical savings accounts are tax-deferred savings accounts and can be used only for medical expenses.

Title IV: Application and enforcement of group health insurance requirements :- Title IV addresses the Consolidated Omnibus Budget Reconciliation Act, or COBRA clarification. Title IV includes the health insurance reform, including provisions for individuals with pre-existing conditions and those seeking continued coverage. This title allow individual to continue health insurance into new employment and allow for same access and renewability as at previous employment.

Title V: Revenue offset governing tax deductions for employers:- Title V provides explanation for federal code changes which help to create more revenue to reduce the additional costs caused by HIPAA implementation. Title V provides policies and provision’s for company-owned life insurance premiums .