Why is HIPAA Important? Updated 2024

HIPAA, introduced in 1996, aimed to address insurance coverage for individuals with pre-existing conditions and between jobs. It led to the development of standards to reduce healthcare insurance fraud, simplify healthcare transactions, and protect the privacy and security of electronic Protected Health Information. HIPAA has benefited both healthcare organizations and patients by streamlining administrative healthcare functions, ensuring protection of sensitive health information, and strengthening patients’ rights over their health data.