Health Portability and Accountability Act (HIPAA) was first introduced by Congress in 1996. It provides data protection in the healthcare industry. In its earliest form, the main purpose of the act was to ensure that employees would continue to receive health insurance coverage when they were between jobs.

Before HIPAA, it was tough for the employee to get the healthcare coverage and they were not able to get essential medical treatment. HIPAA’s purpose was to allow individuals to access healthcare coverage even if they were out of work.

HIPAA also states that healthcare organizations should secure patient data from any kind of healthcare fraud and data leaks.

HIPAA (Health Portability and Accountability Act) also set many new standards to improve the effectiveness of the healthcare industry. It also asked healthcare organizations to reduce the paperwork burden and choose the digital way.

Storage of data in digital portals helped the efficient transfer of healthcare data between healthcare organizations and insurers.

The main purpose to establish Health Portability and Accountability Act was to improve the healthcare system’s storage and use of patient data.

Other big factor that came into existence after HIPAA is the introduction of industry-wide standards of patient data protection in the United States healthcare industry.

Codes set by HIPAA states that organizations should maintain the PHI (protected healthcare information) of the patients. It asks healthcare organizations to safeguard, secure, and protect the personal data and health record of the patient and ask them to improve the security of their sensitive data.

The reason HIPAA ask to improve the security of the data is that digital data is always at risk of hacking, leaks, and unauthorized alteration. If this sensitive data gets leak or hack then hackers or other fraudulent people can access PHI to use it for despicable means such as identity theft. Any fraud or theft of data can put long-lasting and distressing effects for its victims. 


As discussed above it is very clear that HIPAA serves the purpose of boosting the effectiveness in the healthcare field. It helps in maintaining the proper personal and health record of the patient and safeguard patient privacy and privacy of health plan members.

With HIPAA compliance the health record of an individual is always kept safe and secure and patients are informed of breaches of their personal health data.

Any organization that does not meet the HIPAA compliance or fail to comply can be fined heavily by the department of health and human service office for civil right. 

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