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Companies And Individuals Affected By HIPAA

You have most likely heard of the HIPAA, even though you may not be entirely sure what it is. Some people believe that it is something that only concerns firms and medical institutions. The truth, however, is that the HIPAA affects almost everyone. The rest of this article will explore some of the ways in which HIPAA affects firms and people.

  

Insurance companies

The implementation of the HIPAA had a profound impact on insurance companies, as they were forced to reform the manner in which they write up new insurance policies for individuals who have either allowed their previous coverage to lapse or have changed jobs. The HIPAA legislation makes it easier for those whose coverage had previously lapsed to obtain new coverage. It is also easier for employees to retain their insurance coverage even when switching employers, through shortening exclusion periods based on pre-existing conditions or removing them entirely. Insurance companies are also prevented from charging those who have submitted insurance claims higher premiums. Insurance companies have been forced by the HIPAA to edit their policies such that they are now more friendly to those in need of new insurance coverage.

Medical facilities

The HIPAA has had a significant impact on all medical facilities ranging from large hospitals to small clinics. The aim of the HIPAA with regard to medical facilities was to improve the security of storage and transmission of medical data. The creation of procedure manuals and appointment of individuals to posts directly related to the HIPAA regulations are the effects of HIPAA regulation on medical facilities. The regulations of the HIPAA also require that various stringent operating procedures be implemented in order to strengthen the security of electronic data and medical records. Among the new procedures mandated by the HIPAA are careful documentation and constant internal auditing of electronic information and storage and transmission systems.

Individuals

Individuals are affected by the HIPAA to varying degrees, depending on each person’s situation, although anyone who receives medical care is directly under the influence of the HIPAA. The law that requires medical records and payment histories to be kept private and confidential was put in place as part of the HIPAA, thus creating more paperwork for medical institutions and patients. Anyone who has allowed his or her insurance coverage to lapse for a long period of time will also be directly affected by the HIPAA. Finally, the HIPAA allows individuals who believe that their personal privacy has been violated to lodge a formal complaint with the Department of Health and Human Services.

At the end of the day, the HIPAA affects everybody. While the medical institutions bear the brunt of the impact, the regulations put in place to protect the rights of individuals to health insurance and personal privacy affect everyone.


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