HIPPA

The Health Insurance Portability And Accountability Act

The Health Insurance Portability And Accountability Act

The Health Insurance Portability And Accountability Act (HIPPA)

The Health Insurance Portability and Accountability Act, or HIPAA, was instituted in order to let people keep their group health insurance coverage who have a preexisting medical condition. The act enables people to receive new health insurance that would not normally qualify for a new insurance plan based on having a preexisting health aliment that would preclude them from qualifying to purchase new health insurance. HIPAA defines a preexisting medical condition as any condition that has been treated in the last six months by a doctor or medication. The law limits the amount and type of restrictions that insurance plans can place on people with preexisting conditions (Wolf, 2006).

Why Was HIPPA Created?

The Health Insurance Portability and Accountability Act was created to enable people to leave their job in search of a better opportunity if one presented itself without fear of having to stay because of health insurance benefits. Once you qualify for health insurance benefits and then develop a debilitating condition, for example, you are still qualified under your group health insurance plan at work in most cases. But, leaving your job will result in the loss of your group health insurance benefits. Health Insurance Portability and Accountability Act protects you from not being able to purchase new health insurance. HIPAA enables people to leave their jobs and makes it possible for them to obtain new health insurance for themselves and their family members at a new job that offers group medical coverage (Wilson, 2006).

HIPPA Requirement of Insurers

The Health Insurance Portability and Accountability Act has several requirements that employers and health insurance companies have to meet. The law requires all health insurance companies that have group policies not to decline ...