What is the purpose of HIPAA?

purpose of HIPAA

HIPAA is better known as the Health Insurance Portability and Accountability Act and was first introduced by the U.S Congress in 1996. Being an important legislative act, the main purpose of it was to improve the efficiency of the healthcare system and the protection of patient’s data. In the beginning, the sole purpose of this act was to ensure that employees would continue to receive health insurance coverage when they were between jobs.

purpose of HIPAA

Without this act, it was very difficult for the employees to get healthcare coverage.  Health Insurance Portability and Accountability Act’s idea was to allow individuals to access Health care coverage even if the individuals were out of work.

This act also required healthcare organizations to tighten the security to secure individual data to prevent health care fraud. 

The other purpose of HIPPA was to enhance efficiency in the healthcare sector by asking health care organizations to adopt the codes to reduce the paperwork burden and accept new digital ways.

Health Insurance Portability and Accountability Act also forbids the tax-deduction of interest on life insurance loans, enforces group health insurance requirements, and standardizes the amount of money that may be saved in a pre-tax medical savings account.

Today HIPPA is famously known for providing privacy, security and confidentiality to the patients or individual’s the health care data and information.

With HIPPA privacy rule few limits were set regarding the disclosure of protected health information and its allowable uses, stating that when or with whom can be this health information be shared. Here it was also made clear that patient can easily access their health care records and changes could be made as to their request. 

With HIPAA security rule it was made clear that electronic data of an individual should be properly secured, and patients should have easy access to electronic health data. 


At the end we would conclude by saying that sole purpose of HIPAA was to improve the efficiency in the health care field to boost the portability of health insurance, to safeguard the privacy of patients and health plan subscriber.

With other rules of HIPAA such as Privacy Rule and Security Rule, it was made clear that all the health information and health records of the person should be kept secure confidential, and patients are made aware of breaches of their healthcare data. So as discussed above these are the purpose of the Health Insurance Portability and Accountability Act.

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