Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

What is the main objective of HIPAA?

1. To provide better patient care

2. To ensure health insurance portability while protecting patient privacy

3. To reduce healthcare costs for providers

4. To increase the number of insured individuals

The correct answer is: To ensure health insurance portability while protecting patient privacy

The main objective of HIPAA (Health Insurance Portability and Accountability Act) is to ensure health insurance portability while protecting patient privacy. This landmark legislation, enacted in 1996, has several critical components aimed at safeguarding patient information and ensuring individuals can maintain their health insurance coverage when they change or lose their jobs. By focusing on both portability and privacy, HIPAA not only facilitates the transfer of health insurance for employees and their families but also establishes national standards for the protection of sensitive patient data. This means that health care providers, plans, and clearinghouses are required to implement safeguards to protect the privacy and security of health information, ensuring that individuals' medical records and other personal health information remain confidential. While better patient care, reducing healthcare costs, and increasing the number of insured individuals are important goals in the healthcare system, they are not the primary objectives outlined in the HIPAA framework. The focus remains on the dual goals of ensuring continuous health insurance coverage and maintaining strict privacy standards for health information.