The Health Insurance Portability and Accountability Act (HIPAA) of 1996 is a federal law that creates national standards to protect sensitive patient health information, known as protected health information (PHI), that is handled by certain individuals and "covered entities" subject to HIPAA law. Generally, HIPAA applies to healthcare providers who electronically transmit health information in connection with certain transactions, including claims, benefits, referrals. HIPAA sets limits on the use and disclosure of such information.
The HIPAA Privacy Rule establishes national standards to protect individuals' medical records and other personal health information and applies to "covered entities" subject to HIPAA law that handle patients' PHI. "Covered entities" include healthcare providers who electronically transmit health information in connection with certain transactions, including claims, benefits, referrals. HIPAA requires covered entities to implement reasonable safeguards to protect the privacy of individually identifiable health information by limiting incidental uses or disclosures.
