What is one reason HIPAA was established in 1996?

One reason HIPAA was established in 1996 is to reduce health care fraud. The Health Insurance Portability and Accountability Act includes provisions aimed at reducing fraudulent activities that could compromise the integrity of the healthcare system. By enforcing standardized electronic transactions and safeguarding patient information, HIPAA enhances accountability and integrity in handling healthcare data. The act introduces measures to monitor healthcare practices, impose penalties for fraudulent activities, and ensure that individuals' medical records remain private and secure. This helps to prevent fraud and abuse within the healthcare system, ultimately protecting patients and their information.

Understanding this framework is crucial, as it underscores the importance of regulatory measures in maintaining a trustworthy and efficient healthcare environment, which is pertinent for healthcare providers, insurers, and patients alike.