How does HIPAA aim to safeguard personal health information?

This answer is correct because HIPAA, the Health Insurance Portability and Accountability Act, is designed to ensure the privacy and security of individuals' medical records and other personal health information. The act establishes national standards that require healthcare providers, health plans, and other entities to implement administrative, physical, and technical safeguards to protect sensitive health data. These policies help prevent unauthorized access, use, or disclosure of personal health information, ensuring that patients’ confidentiality is maintained while still allowing for the necessary flow of information for treatment purposes and health care operations when appropriately permitted.

The other options miss the mark because limiting access to family members does not encompass the broader intent of HIPAA, which is about overall data protection rather than restricting who can see records. Encouraging public sharing of medical records would counter HIPAA's purpose, as it seeks to minimize unnecessary disclosures. Lastly, while HIPAA does impose restrictions on data sharing, it does not prohibit all forms of data sharing; rather, it provides guidelines under which health information can be shared safely, such as with patient consent or for treatment purposes.