HIPAA, which stands for the American Health Insurance Portability and Accountability Act of 1996, is a set of rules to be followed by doctors, hospitals and other health care providers. HIPAA took effect on April 14, 2006. HIPAA helps ensure that all medical records, medical billing, and patient accounts meet certain consistent standards with regard to documentation, handling and privacy.

In addition, HIPAA requires that all patients be able access their own medical records, correct errors or omissions, and be informed how personal information is shared used. Other provisions involve notification of privacy procedures to the patient. HIPAA provisions that have led in many cases to extensive overhauling with regard to medical records and billing systems.

HIPAA Privacy Rule
The HIPPA Privacy Rule mandates the protection and privacy of all health information. This rule specifically defines the authorized uses and disclosures of "individually-identifiable" health information.

HIPAA Transactions and Code Set Rule
The HIPPA Transaction and Code Set Standard addresses the use of predefined transaction standards and code sets for communications and transactions in the health-care industry.

HIPAA Security Rule
The HIPAA Security Rule mandates the security of electronic medical records (EMR). Unlike the Privacy Rule, which provides broader protection for all formats that health information make take, such as print or electronic information, the Security Rule addresses the technical aspects of protecting electronic health information. More specifically, the HIPPA Security standards address these aspects of security:

» Administrative security - assignment of security responsibility to an individual.

» Physical security - required to protect electronic systems, equipment and data.

» Technical security - authentication & encryption used to control access to data.