Life & Health Insurance Exam (National Portion)Federal RegulationsEasy
A small business owner is researching health insurance options for their employees. They are concerned about the portability of coverage for employees who might change jobs. Which federal act primarily addresses the continuation and portability of health insurance coverage?
- AUSA PATRIOT Act
- BHealth Insurance Portability and Accountability Act (HIPAA)
- CEmployee Retirement Income Security Act (ERISA)
- DGramm-Leach-Bliley Act (GLBA)
Show answer & explanationAnswer & explanation
Correct answer: B. Health Insurance Portability and Accountability Act (HIPAA)
HIPAA (Health Insurance Portability and Accountability Act) is the federal law that ensures the portability of health insurance coverage, allowing individuals to maintain coverage when changing or losing jobs. It also establishes national standards for protecting sensitive patient health information.
Why the other options are wrong
- A. The USA PATRIOT Act aims to prevent terrorism by expanding government surveillance and financial regulations, not health insurance portability.
- C. ERISA regulates employee benefit plans, including health plans, but HIPAA is more directly focused on portability.
- D. GLBA primarily deals with financial privacy and the sharing of customer information by financial institutions.
HIPAA Portability
HIPAA ensures that individuals who change or lose their jobs can maintain health insurance coverage, preventing pre-existing conditions from blocking new coverage.
- Guarantees health insurance portability.
- Limits exclusions for pre-existing conditions.
- Applies to group health plans and some individual plans.
Memory trick: HIPAA helps you HOP over job changes with your health plan.