Why do we need HIPAA.
HIPAA was designed to protect the patient’s confidentiality. When completely adhered to, HIPAA regulations help ensure privacy, reduce fraudulent activity and improve data systems. By knowing of and preventing security risks, this is estimated to save providers billions of dollars annually. Under the patchwork of laws existing prior to the HIPAA and the Privacy Rule, personal health information could be distributed without either notice or authorization. Whether this had anything to do with the patient’s treatment or health care reimbursement. For example, patient information could, without the patient’s permission, be passed on to a lender who could then deny the patient’s application for a credit card or home mortgage or an employer making personnel decisions.