Medical Auditing Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

HIPAA stands for the Health Insurance Portability and Accountability Act. This legislation was enacted in 1996 to address the protection of patient health information and to ensure the portability of health insurance coverage for individuals who change jobs or health plans. The act has two primary purposes: first, to improve the efficiency and effectiveness of the healthcare system by standardizing electronic health information and second, to protect the confidentiality and security of healthcare information.

The term "portability" refers to the ability of individuals to maintain their health insurance coverage when transitioning between jobs, while "accountability" emphasizes the responsibility of healthcare providers and organizations to safeguard patient information. This framework has significant implications in the auditing process, as it requires compliance with regulations surrounding privacy, data security, and the proper handling of medical records. Understanding HIPAA is crucial for medical auditors who assess compliance and protect patient rights in the healthcare system.