insurance

Health Insurance Portability and Accountability Act

A 1996 federal law commonly known as HIPAA that protects your health information privacy and ensures you can maintain health coverage when changing jobs. It sets national standards for how medical information can be used and disclosed by healthcare providers, insurers, and other entities.

Example

“When Janet switched jobs, HIPAA protections ensured her new employer's health plan couldn't exclude her diabetes treatment, and her doctor's office needed her written consent before sharing her medical records with the new insurer.”

Memory Tip

Remember 'HIPAA' as 'Health Info Privacy And Access' - it's about protecting your medical privacy and ensuring access to coverage.

Why It Matters

HIPAA gives you fundamental rights over your health information and prevents insurance discrimination based on health status when you change jobs. Without these protections, you could lose coverage or face exclusions for pre-existing conditions during job transitions.

Common Misconception

Many people think HIPAA prevents all sharing of health information or that it's spelled 'HIPPA.' HIPAA actually allows sharing for treatment, payment, and healthcare operations - it just requires proper safeguards and often your authorization for other uses.

In Practice

When Tom left his job at a large company to start his own business, HIPAA portability rules meant his new individual health plan couldn't impose a waiting period for his ongoing heart medication coverage. Additionally, when he requested copies of his medical records for his new doctor, the hospital had to provide them within 30 days and could only charge reasonable copying fees, not the $500 administrative fee they initially quoted.

Etymology

Enacted in 1996 during the Clinton administration, HIPAA was named to reflect its dual purpose: ensuring health insurance 'portability' when changing jobs and establishing 'accountability' for protecting health information.

Common Misspellings

HIPPAHealth Insurance Portablity ActHealth Insurance Portability and Accountablity ActHIPAA Act

Related Terms

COBRA pre-existing condition

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