Health Insurance Portability and Accountability Act
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Duquesne University HIPAA (lower header)

1. History and the Eleven Parts of HIPAA


History of HIPAA

Duquesne University Students The Health Insurance Portability and Accountability Act (HIPAA) of 1996 was instituted to provide health insurance portability for individuals, to protect the privacy and security of patient health information, and to eradicate fraud and abuse. Also known as the Kennedy-Kassebaum Act or the Administrative Simplification Act, HIPAA was enacted on August 21, 1996. The law applies to all healthcare providers, clearinghouses, and healthcare plans, any organizations that transmits healthcare information, and any organization that delivers, bills, or receives money for healthcare services (and to the vendors or business associates of these organizations.)

A healthcare provider is defined as a provider of medical or other health services and those entities that furnish or bill and are paid for healthcare services as part of their everyday operations.

The impetus for HIPAA came from both providers and consumers. Providers wanted standardization and simplification of healthcare claims. Presently multiple healthcare claim forms, both paper and electronic, exist. Thus when transmitting claims data, many times the data must first be passed through a clearing house which formulates the outgoing data from the provider to the receiving payer organization, and vice versa. This "added step" adds both time and cost to the process. HIPAA standardizes claim submission such that the sender and the receiver will have the same formage.

Consumers demanded privacy and security of their patient health information that includes all oral, paper, and electronic notations. This healthcare information can be utilized to discriminate in employment settings and insurance buying. With wide ranging implication, HIPAA is integral throughout the delivery of quality healthcare.


Eleven Parts of HIPAA

The Health Insurance Portability and Accountability Act is comprised of five parts called Titles. Titles 1 through 5 include Health Insurance Access, Portability, and Renewal (Title 1), Prevention of Healthcare Fraud and Abuse (Title 2), Tax Related Provisions (Title 3), Group Health Plan Requirements (Title 4), and Revenue Offsets, (Title 5). Title 2, Prevention of Healthcare Fraud and Abuse contains Subtitle F which is Administrative Simplification. Within Subtitle F, there are six components as follows: Electronic Transaction Standards, Unique Health Identifiers, Standard Code Sets, Privacy Legislation, Electronic Signature Standards, and Information Security.

Further delineation of the six components results in eleven Rules of the Health Insurance Portability and Accountability Act.

  1. Claims Attachment Rule: Will establish national standards for the format and content of electronic claims attachment transactions.

  2. Clinical Data Rules: Will establish national standards for clinical data. This will include clinical messaging standards.

  3. Duquesne University Students
  4. Data Security Rule: Will establish technical and administrative protocols for the security and integrity of electronic health data.

  5. Enforcement Rule: Will establish rules on how the Government will enforce HIPAA.

  6. First Report of Injury Rule: Will establish national standards for the format and content of electronic first report of injury transactions used in workers' compensation cases.

  7. National Employer Identifier Rule: Will establish the federal tax identification number as an employer's national identifier.

  8. National Individual Identifier Rule: Will establish one patient identifier for all of one's individual patient health information.

  9. National Payer Identifier Rule: Will establish a national identifier for each health insurer.

  10. National Provider Identifier Rule: Will establish a national identifier for each provider and the mechanisms for disseminating, storing, and updating the identifier.

  11. Privacy Rule: Will establish guidelines for the use and disclosure of patient health information.

  12. Transactions and Code Sets: Will establish standard formats and coding of electronic claims and related transactions.

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