What is HIPAA?

The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that enables people to keep their healthcare private. This is done through HIPAA compliance, which requires health care providers to follow specific guidelines in order to comply with the law.


There are three main types of entities that must comply with HIPAA: covered entities, business associates, and third-party vendors. In most cases, a covered entity is a hospital, health plan, or other medical service provider. However, the law applies to all entities that receive, maintain, or transmit PHI.

To be compliant, a health care organization must develop procedures, practices, and technologies to safeguard PHI. If a violation occurs, the organization can face penalties. A fine ranges from a few thousand dollars to more than a million.

As more technology becomes available, the number of rules and guidelines that must be followed continues to grow. For example, HIPAA compliance requires health care organizations to implement a risk analysis. It identifies which risks may be present in patient information.

It also involves developing technical and physical safeguards. These safeguards can include access control, encryption, and auditing procedures.

When a breach occurs, the Health and Human Services (HHS) Office for Civil Rights (OCR) investigates and issues penalties. A fine can be as low as $50,000 per incident, or as high as multi-million dollars for violations that have been in place for more than a year.

In addition to protecting people's privacy, HIPAA helps to improve the efficiency of the entire healthcare industry. Since HIPAA compliance is costly, it is best to have a plan in place to help reduce the potential impact of a violation.

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