Health Insurance Portability and Accountability Act of 1996 (HIPAA)
The main provisions of HIPAA, effective July 1, 1997:
- Prohibits denial of insurance because of pre-existing medical and genetic conditions.
- Requires insurance companies to offer policies to small businesses and employers.
- Guarantees insurance policy renewal, providing continuous premiums and coverage.
- Provides for continuity and portability of health insurance coverage for persons changing employment.
However, even with HIPAA provisions, there are large gaps in coverage for many people:
- Only persons currently enrolled in health plans as of July 1, 1997 are covered by HIPAA provisions
- People receiving health care policies as a result of employment in large, multi-state, self insured insurance companies are not protected by these provisions.
- Because there are no caps on premiums, a person can effectively be denied coverage because of inability to pay increased rates.
A more detailed explanation of the provisions and limitations of HIPAA can be found on the Internet at:
http://www.os.dhhs.gov/news/press/1996pres/960821.html
The full text of the Act is available at: http://aspe.hhs.gov/admnsimp/final/PvcPre01.htm
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