HIPAA

One of the highlights of Bill Clinton's term as president was enactment of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The legislation was intended as a multi-step approach to improve the health insurance system. Its supporters touted it as a way to protect patient privacy, ensure that people would be able to keep their insurance if they change jobs, and reduce health insurance industry costs by as much as $9 billion.

Clinton signed the legislation in August of 1996 and its provisions went into effect on December 20, after the U.S. Congress was unable to agree on more comprehensive health care regulations. According to the legislation, since Congress was unable to agree on the specifics of health care reform, it fell to the U.S. Department of Health and Human Services to issue regulations to protect citizens' medical information privacy and access to insurance. Although adopted in 1996, HIPAA's requirements were phased in over a number of years, with the last provisions not taking effect until October of 2003.

Particulars

In particular, Title IV of the legislation is designed to create national standards to protect the privacy of patient information. It greatly restricts how a person's medical history can be used and by whom. It contains provisions that prohibit any company or organization covered by the act from disclosing or using an individual’s healthcare information without permission except for treatment, payment, or healthcare operations. The act covers most health care providers, health organizations, and government health plans that use, store, maintain, or transmit patient health care information except for some small, self-administered health organizations.

Title I of the act contains provisions to allow people to keep their insurance when they move from job to job and to prevent insurance companies from denying coverage due to preexisting health conditions. It also protects a person's rights to health insurance coverage when and if they change jobs, lose a job, get divorced, become pregnant, or move. Self-employed people also are covered by this provision.

Group Health Insurance

Under HIPAA, a person cannot be denied group health insurance because of any health factors. A person can be denied coverage if they do not meet the eligibility requirements of the employer. Eligibility requirements may be based on the number of hours worked or whether the person is an hourly or salaried employer.

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