The Health Insurance Portability Act of 1996 (HIPAA) is the federal law that established common standards for privacy of health information. Protected health information (PHI) is any information that identifies the patient.
HIPAA
HIPAA was created with the goal of maintaining insurance benefits when you change jobs. Other purposes include: managing health care information, protecting the privacy of health information and protecting the security of health information nationwide. The use of HIPAA gives you more control of who has access to your health information. With the use of electronic documentation and data transmission, standards were established to increase privacy protection of health records.
Protected Information
Protected information refers to any information that identifies the patient. It includes demographics, treatment, payment for health care service and health care operations. Specifics examples are name, employer name, beneficiary number, device serial number and photographic images. This information can be found in computer files, paper files and during conversations.
Compliance
Hospitals, physician offices, nursing homes, insurance companies and patient billing services -- also referred to as covered entities -- must comply with HIPAA regulations and protect your information. The federal government established severe legal and financial consequences for covered entities who do not comply with HIPAA regulations.