What Is HIPAA Law and Why Is It Essential in Medical Billing

what is hipaa law

HIPAA is a groundbreaking piece of legislation that helped shape the modern healthcare industry. Despite HIPAA’s importance, many Americans don’t understand the law or how it benefits medical patients. So, what is HIPAA law?

Fortunately, the medical experts at PracticeForces are here to tell you everything you need to know about HIPAA and its effects on the medical industry.

PracticeForces is one of Florida’s leading medical billing services. Our team has vast experience in medical billing and can help your practice reach incredible new heights by improving its efficiency, organization, and more. Whether you need to enhance your claim processing or want to learn the top physician burnout causes, PracticeForces is here for you.

What Is HIPAA Law?

HIPAA, also known as The Health Insurance Portability and Accountability Act, came into fruition after Congress passed the law in 1996. The law required the medical industry to implement numerous safeguards to protect patients’ privacy and prevent doctors from sharing individually identifiable health information without their patient’s consent. It also attempts to:

  • Address insurance coverage for the unemployed
  • Hinder healthcare fraud
  • Secure protected health information (PHI)
  • Improve administrative simplification
  • Enhance medical office efficiency
  • Transition clinics to electronic records

In addition, the HIPAA privacy rule establishes a unified code set to ensure electronic medical information transfers smoothly and securely among each healthcare entity (provider, health plans, medical clearinghouses, etc.). This prevents sensitive medical information from falling into the wrong hands and landing on the black market.

Before HIPAA, criminals used private healthcare information to steal identities. They would also sell the data to uninsured people looking to cover their expensive medical procedures on someone else’s dime. These actions caused the victim’s insurance premiums to skyrocket while putting unnecessary strain on their lives.

HIPAA drastically changed how the healthcare industry operates and provided numerous benefits to American citizens. The law granted patients more control over their medical records, streamlined medical document transfers, improved client privacy, enhanced information technology, and more. It’s a revolutionary law that made the healthcare system what it is today.

HIPAA Violations

When someone asks, “What is HIPAA law?” they are often surprised by its violation penalties. HIPAA carries harsh consequences for anyone who violates the revolutionary act.

Every healthcare entity must adhere to HIPAA to continue working in the medical industry. Failure to do so can have severe legal consequences and often results in incarceration. Offenders risk one to ten years in prison if found guilty of HIPAA violations.

Contact PracticeForces for Professional Medical Billing and Associated Services

Next time you ask, “What is HIPAA law?” contact PracticeForces. Our medical billing can improve your practice’s efficiency while enhancing its overall organization. We can take your clinic to new heights at a price that almost any healthcare practitioner can afford.

If you want to learn more about HIPAA, automated payment collection, or medical billing services, Contact PracticeForces. Call us at (727) 499-0351 and take your medical practice to the next level today!

Parul Garg, CEO and co-founder of PracticeForces, has significantly contributed to the growth of over 1,000 U.S. medical practices through her expertise in medical billing and coding since the company’s inception in 2003. With a background in Computer Science and an MBA in Human Resources, her leadership and AAPC-certified coding skills have been pivotal in managing the company’s operations effectively.

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