In the year of 1996, an act by name “Health insurance portability and accountability” (HIPAA) was established to ensure the privacy of the policy holders (for individual plans) and also all the beneficiaries (group coverage). The main purpose of the act was to restructure the guidelines for the electronic transactions.
The HIPAA rules are subject to revision based on the changes that take place in the insurance industry. The act resulted in a great reform of the health care insurance industry. All the mal-practices in the industry are minimized both from the client’s end as well as from the provider’s end.
The act makes it mandatory for the state health and public service departments to ensure that the health insurance providers in the state adopt National standards along with national identities.
The data of the clients with the providers is to be maintained confidential and sharing the information is to be done with the acceptance of client upon request. Even the health care companies can’t access the health information without quoting proper reason to the health centers. The employees may even be sacked if found acting foul in such cases.
If the standards are adopted, it can improve the efficiency and reduce the wastage in the insurance industry. For both the employee cover and the group cover of the dependents of the employees, the interests are protected by:
The individual policies are protected by the rights in the interests of the individual plan seekers like: