Describe the law and its purpose. · Explain how it is enacted. For example, is it enacted by the state or federal government? · What are some key facts every employee should know about the law? · What are the consequences of the organization or the employee for failing to abide by the law? · How do these regulations effect the management of employees, resources, patients, and health care? · Format your paper consistent with APA guidelines.

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According to Austin, (2012) the Health Insurance Portability and Accountability Act of 1996 is “a federal law that mandates insurance portability and sets up procedures for electronic data exchange,” (Page 20). This legislation is a congressional attempt to ensure patient’s privacy is protected. The HIPAA consists of five sections or titles. The first title “provides for insurance portability,” (Austin, 2012 Page 25). The second title regulates abusive and fraudulent acts of medical obligations.

It also standardizes administrative transactions. This title covers additional security precautions and demands electronic data interchange (EDI). The third title pertains to taxes. The fourth and final title incorporate specific healthcare plans and proceeds counterbalance. The Health Insurance Portability And Accountability is a mandate established by the federal legislation. Patient’s health information is exchanged amongst different sectors of the healthcare industry. Therefore, the federal government must safeguard patient’s privacy.

The HIPAA enforces regulations and standards for employees in the healthcare sector. The HIPAA Privacy Rule only permits healthcare providers or covered entity to use a patient’s public health information for treatment, payment, surgeries, or incidents in terms with the exceptions. The Privacy Rule applies for written, spoken, or electronic healthcare information. Covered Entity are healthcare providers, healthcare clearinghouses, and health plans. Employees are only affected if they “somehow operate in one or more of those capacities,” (HIPAA, Par 5).

As stated in the HIPAA, employees must assume and understand personal health information procedures. Employees are required to avoid disclosing valid, private information while providing general information for the individual whom requests. It is essential that employees realize there are exceptions to the privacy rule.General information that does not release identifiable traits can be an exception. An employee could face several consequences if they fail to comply with the HIPAA regulations.

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Depending on the offense, consequences could range from a violation penalty fines, loss of job, or imprisonment. The HIPAA regulations greatly affectsthe entire management of a healthcare business. It describes how things are to be done and why. It also allows patients to feel comfortable by knowing their information is protected. This legislations also creates consequences, in the event that an individual is not in compliance. This allows secured information to be exchanged appropriately.

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