Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

Which of the following is a key purpose of the Health Insurance Portability and Accountability Act (HIPAA)?

1. Ensure all patients receive the same level of care

2. Protect the privacy and security of patients’ health information

3. Standardize medical coding across the U.S.

4. Reduce healthcare costs

The correct answer is: Protect the privacy and security of patients’ health information

The key purpose of the Health Insurance Portability and Accountability Act (HIPAA) is to protect the privacy and security of patients’ health information. HIPAA establishes national standards for the protection of certain health information, ensuring that patient data is kept confidential and secure, thereby granting individuals greater control over who can access their medical records. This legislation safeguards personal health information (PHI) by limiting the circumstances under which it can be shared and mandates that healthcare organizations implement appropriate security measures. The act includes provisions on how healthcare providers, health plans, and other entities must manage and disclose patient information, which is vital for maintaining ethical standards and trust within the healthcare system. While standardizing medical coding, ensuring uniform levels of care, and reducing healthcare costs are relevant issues in healthcare, these are not the primary focus of HIPAA. Instead, HIPAA explicitly emphasizes the importance of privacy and security as pivotal aspects of health information management.