HIPPA or the Health Insurance Portability and Accountability Act of 1996 is a federal official act, which deals with health records. When there is a need to collect maximum amount of information from patients that need to be transmitted worldwide, the question of patient privacy comes into consideration.

At such times, HIPAA plays a pivotal role. Legislation to protect a particular individual's identity and modesty against any leakage of information or any abuse has always been a top priority for the governments on a global basis.

By the advent of HIPPA privacy by the U.S. government, the concern of privacy that has to be maintained by the hospitals and clinics has been preserved exceptionally well. Company or an individual, who works under the HIPAA Privacy act are assigned with tasks to protect health related information. Generally, they are known as Business Associates.

The HIPAA privacy policy act of 1996 was a Congress passed public law and the benefits are as follows:

· To improvise health insurance coverage individually and for better convenience to consumers

· To fight against fraudulent and abusive behaviors in the field of health insurance

· Reduction of cost and administrative burden of health concern on hospitals and clinics by updating and standardizing electronic data for specific administrative transactions

· Increase in customer satisfaction

The rules and regulations of the HIPAA privacy policy in clinical information systems observed by the hospitals and clinics help in protecting health information and assure an individual's right to have adequate control over his/her confidential matters.

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