July 12, 2008 Health Insurance Portability and Accountability Act (HIPAA) was signed on 21st August 1996 by the U.S President Bill Clinton. Most healthcare insurance companies and providers are to remain to the HIPAA regulation guidelines by October 2002 and October 2003 for smaller health plans. If you are in the healthcare industry, you have probably heard some rumblings about the Health Insurance Portability and Accountability Act of 1996, calmly referred to as HIPAA. The word is your medical practice will have to be HIPAA compliant by April 2003, but you are not exactly sure what this act mandates or how to accomplish it. In very basic terms, HIPAA has two primary components …show more content…
(What is HIPAA? 2008) HIPAA regulation helps doctors to work with other doctors and health insurance companies. HIPAA laws will impact the day-to-day operations of all health care organizations that create, transmit or store data related to health care electronically. Health information regarding a patient is needed to the doctors, nurses and others so that they (patients) can be treated well. Without the authorization of the patients, no health organization can share the information related to patients with a life insurer. According to the regulations of HIPAA, a secure system, which protects the patient’s information, is required by the doctors, pharmacies, health insurers and other healthcare providers (Zondorak, & McCormick). Review of the policies and procedures regarding the use, storage and release of protected healthcare information is essential to achieve the compliance with the privacy standards of HIPAA. The steep increase in the paperwork that must be reviewed and signed during the first visit of the healthcare facility is the most noticeable change for the consumers of healthcare services. A detailed ‘Notice of Privacy Practices’ which is received by the consumers for their acknowledgement provides the information as to how the healthcare provider can use and disclose protected healthcare information. It also describes