What Is a HIPAA Compliance?

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A HIPAA compliance refers to the standards and regulations that hospitals must comply to in order to avoid potentially devastating fines, so many hospitals have their on HIPAA compliance officers to keep things legitimate. Understand the compliance laws surrounding HIPAA with information from a representative in this free video on insurance.

Part of the Video Series: Health Insurance Information
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Video Transcript

This is John Pinelli, financial representative talking to you today about HIPAA compliance. HIPAA, the Health Insurance Portability and Accountability Act was enacted with the purpose of keeping medical records safe and aiding in the electronic transfer without people having access to medical records who should not have access to medical records. Now this is becoming increasingly huge because identify theft is the fastest growing crime in America so protecting these medical records, information, social security numbers that may come along with them is vital to the individual's who have put this information at the trust of the hospitals. So in order to ensure that the hospitals are properly managing transferring and storing the data, the health insurance portability and accountability act was put into place. Now they do have compliance which requires hospitals to do continuous checks, certain standards, regulations that they need to follow in order to comply with HIPAA rules and regulations. Now some of the compliance that may be included in HIPAA would be sending out auditors to check up on various hospitals to make sure that they are properly complying with HIPAA. In addition to that, some hospitals may have individual compliance officers which are strictly responsible for maintaining compliance with HIPAA. Now the purpose of that is to avoid potentially devastating fines to the hospital typically could be ranging between 50,000 all the way up to 500,000 dollars for infractions of the HIPAA rules and regulations. So a compliance officer within a hospital could perform a valuable role for the hospital in protecting them from these potential fines and legal proceedings. So this has been John Pinelli, financial representative talking to you today about HIPPA regulations and compliance.

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