What does HIPAA stand for?

HIPAA stands for the Health Insurance Portability and Accountability Act. This legislation, enacted in 1996, was designed to improve the efficiency and effectiveness of the healthcare system. One of its primary purposes is to ensure that individuals who change or lose their jobs do not lose their health insurance coverage. In addition to promoting data privacy and security provisions for safeguarding medical information, HIPAA also mandates the establishment of national standards for electronic healthcare transactions.

Understanding the components of the full name is crucial for recognizing the law's focus on both insurance portability and the accountability of entities that handle healthcare information. The term "privacy" appears in the incorrect option focused on the safeguarding of patient information, but it doesn't capture the entire scope of what HIPAA addresses, which includes the portability of health insurance coverage.