Economic Costs & Benefits of HIPAA

The Health Insurance Portability and Accountability Act of 1996, more commonly known as HIPAA, is designed to improve the portability and continuity of health insurance coverage and care delivery.

History

Traditionally, insurance companies have operated autonomously in a competitive environment that discouraged information sharing. HIPAA came about because health care consumers were tired of repeating their medical information every time they encountered a new health care provider or insurance company.

Significance

HIPAA has impacted virtually every organization involved in health care delivery in the US. Some experts compared HIPAA compliance with Y2K preparations in terms of the time and dollars required to ensure compliance.

Features

Experts describe the costs of HIPAA compliance as administrative (hiring, training, and salaries), technical security (protecting automated information systems), and physical security (controlling access to medical records).

Impact

HIPAA has drawn attention to the need for confidentiality in health care, promoted open discussions about health data reporting and led to more consistent communication about care delivery.

Considerations

Health care leaders are well aware that the initial investment of time and money for HIPAA compliance is only the beginning. Every time a new form of technology is introduced, or the financial environment changes, there will be a need to adjust existing policies and procedures.

References

• Lorrie Cranor
• Massachusetts Health Data Consortium

Resources

• Massachusetts Health Data Consortium