Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

Which of the following statements about HIPAA is true?

1. It allows unlimited sharing of medical records

2. It imposes strict requirements on privacy and security of health information

3. It focuses primarily on billing and coding practices

4. It has no effect on electronic health records

The correct answer is: It imposes strict requirements on privacy and security of health information

The statement that imposes strict requirements on privacy and security of health information is true because HIPAA, the Health Insurance Portability and Accountability Act, was established to safeguard individuals' medical information. This law requires covered entities, including healthcare providers, health plans, and healthcare clearinghouses, to implement specific policies and procedures to ensure the confidentiality, integrity, and availability of protected health information (PHI). It encompasses safeguards like access controls, encryption, and training of staff to ensure that sensitive health information is adequately protected against unauthorized access and breaches. In contrast, the other statements either misrepresent HIPAA's role or scope, such as the idea that it allows unlimited sharing of medical records, which contradicts its purpose of protecting patient information. Furthermore, while billing and coding practices are indeed important in healthcare, HIPAA's primary focus extends beyond those areas to include the broader aspects of privacy and security concerning all health information, not just for billing. Lastly, the assertion that HIPAA has no effect on electronic health records overlooks the substantial set of rules concerning the use and security of electronic data that are vital for maintaining the privacy of sensitive health records in an increasingly digital age.