What does HIPAA stand for?

The correct answer reflects that HIPAA stands for the Health Insurance Portability and Accountability Act. This legislation was enacted in 1996 to improve the efficiency and effectiveness of the healthcare system, primarily through the standardization of electronic healthcare transactions. It also emphasizes the protection of patient privacy and secure handling of health information.

Key components of HIPAA include provisions that safeguard individual medical records and other personal health information, thus ensuring patients' rights to privacy. Additionally, the act prevents discrimination in health coverage due to pre-existing conditions when individuals change jobs, contributing to the portability of health insurance.

Understanding this definition is essential, as it encapsulates the primary goals of HIPAA: to enhance the flow of information within the healthcare system while ensuring that patients' sensitive information remains confidential and protected.