HIPAA, the Health Insurance Portability and Accountability Act, was passed in 1996 to help families, even when they have serious health problems. According to the Centers for herbs are and herbs aid Services' (CMS) website, title number one of the HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs. Title number two of the HIPAA, the Administrative Simplification provisions, requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers.
These administrative simplification provisions also address the security and privacy of health data. The standards are meant to improve the efficiency and effectiveness of the nation's health care system by encouraging the widespread use of electronic data interchange in health care. These provisions however are only applicable to "covered entities", which include health care providers (e.g. masters offices and hospitals) which engage in electronic transactions subject to the HIPAA rules, health plans, and health care clearinghouses.