HIPAA Research Paper Example | Topics and Well Written Essays - 1750 words

HIPAA - Research Paper Example In such a situation Congress realized the requirement of security and privacy standards for the healthcare industry in order to avoid any misuse or abuse of electronic technology (History of HIPAA, n.d). Hence HIPAA was introduced to promote health insurance coverage for both individuals and groups, ensure better security and privacy, promote the use of medical savings account, make long-term services more accessible, and to frame standards for better administration and safer use of electronic technology in the healthcare industry such as the implementation of the national provider identifier (Overview of HIPAA, 2008). The HIPAA was signed by President Clinton on July 21, 1996 in lieu of several security, privacy and abuse in the healthcare industry. HIPAA guaranteed health insurance to all Americans and ensured simplification of administrative process in healthcare in order to increase the effective delivery of healthcare to all people. Additionally the security and privacy of healt h information was also protected under the act (Security and Privacy, 2001). The use of electronic technology in healthcare had vastly expanded during the 1990s. ... These privacy and security rules apply to three groups of covered entities (CE): health care provider, health plan and healthcare clearinghouse. The healthcare provider group includes health care service providers and suppliers who use the electronic form for transactions and other health care information such as doctors, clinics, psychologists, dentists, chiropractors, nursing homes and pharmacies. The health plan group includes individuals or groups that provide and pay for health care plans such as health insurance companies, HMOs, company health plans, Medicare, Medicaid, military and other health programs offered by the government. The healthcare clearinghouses include both public and private entities that receive non-standard health information and convert them into a standard content or vice versa (Privacy and Security, n.d; Security and Privacy, 2001). The HIPAA standards will also indirectly apply to business associates or partners of a covered entity such as software provid ers and other third party vendors (Privacy and Security, n.d). The standards devised by the HIPAA for the transactions carried out in the electronic form need to the adhered to by the CEs (Security and Privacy, 2001). The HIPAA standards include transactions and code sets, privacy and security and national provider identifier. The entities that comply with the HIPAA standards are required to use the same health care transactions, code sets and identifiers. The HIPAA standards for electronic data interexchange (EDI) is applicable to claims and claim status, encounter information, payments and remittance, inquiries, referral certification and authorization, enrollment or disenrollment in a health care plan, premium payments,