Origin

• Duke Health explains that HIPAA originated from growing public concern about how private health care information was being used. Congress passed the the Health Insurance Portability and Accountability Act of 1996 on August 21, 1996, to address these concerns.
  
  

Significance

• The intent of HIPAA is to improve health care efficiency and to simplify procedures involved in health care insurance. In addition, HIPAA created laws regarding the privacy and security of health care records. The majority of health care providers must have implicated HIPAA regulations and standards by April 2003.
  
  

Function

• The U.S. Department of Health and Human Services explains that HIPAA grants federal protection to personal health documents. Health care information can only be disclosed to those who have a direct need to see specific information. HIPAA ensures that a patient's medical information stays safeguarded, and provides a set of standards and rules that must be followed in regard to health records.