Insurance coverage for those between jobs was one of the main issues that HIPAA was designed to solve in 1996. Otherwise, employees who were between employment would have lost their insurance coverage without HIPAA.
HIPAA’s second objective was to stop healthcare fraud, ensure that all protected health information (PHI) was properly secured, and limit access to health information to only those with access privileges.
For the healthcare sector, HIPAA helped in the switch from paper to electronic documents. It aided in streamlining administrative healthcare tasks, increasing productivity in the sector, and ensuring that sensitive health information was transferred securely.
Under HIPAA, protected health information includes demographic data like birth dates, gender, and ethnicity and health data including diagnoses, treatment information, lab tests, and prescription information.