Life & Health Insurance Exam (National Portion)Federal RegulationsEasy
An insurance company is implementing new procedures to ensure that its employees do not use or disclose a client's protected health information (PHI) for purposes other than treatment, payment, or healthcare operations, unless authorized. Which federal regulation is the primary driver for these new procedures?
- AHealth Insurance Portability and Accountability Act (HIPAA)
- BGramm-Leach-Bliley Act (GLBA)
- CEmployee Retirement Income Security Act (ERISA)
- DUSA PATRIOT Act
Show answer & explanationAnswer & explanation
Correct answer: A. Health Insurance Portability and Accountability Act (HIPAA)
HIPAA's Privacy Rule specifically governs the use and disclosure of Protected Health Information (PHI) by covered entities, including insurance companies, ensuring it's used only for authorized purposes or with patient consent.
Why the other options are wrong
- B. GLBA focuses on the privacy of financial information, not health information.
- C. ERISA deals with employee benefits plans, not the privacy of health information.
- D. The USA PATRIOT Act addresses anti-terrorism measures and financial crimes, not health data privacy.
HIPAA Privacy Rule
The HIPAA Privacy Rule establishes national standards to protect individuals' medical records and other personal health information.
- Applies to health plans, healthcare clearinghouses, and healthcare providers.
- Gives individuals rights over their health information.
- Requires safeguards to protect the privacy of PHI.
Memory trick: Health information is HIPAA's domain; financial info is GLBA's claim.