Health Insurance Portability and Accountability Act (HIPPA) refers to an act enacted by the U.S congress in the year 1996. Title I of this act deals with health insurance coverage for workers and their families in case of changing or losing their jobs. Title II of HIPAA requires national standards for electronic healthcare transactions, health insurance plans etc.
The standards are for improving the efficiency and effectiveness of the healthcare system of a nation. This is done by encouraging rampant use of electronic data interchange in the health care system of United States.
Title II also mentions various offenses related to healthcare and establishes civil and criminal penalties for them. It has several programs to control the abusive and fraudulent practices within the heath care system. With the enactment of the HIPAA Privacy and Security Acts, medical centers were insisted to comply with the act. Violations were dealt with severe penalties.
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