There are several objectives or goals that should be achieved through HIPAA compliance including accountability, insurance reform and administrative simplification. If providers fail to comply with HIPAA standards, fines from $25,000 up to $250,000 can be imposed. Imprisonment up to 10 years can be enforced for multiple violations and for knowledge of knowing of the misuse of individually identifiable health information. Objectives are to be achieved through the used of electronic date interchange.
Electronic Date: HIPAA provides mandates that control technical safeguards during electronic interchange among providers and insurance companies. The information must be protected from intrusion with some type of encryption. The provider must ensure the information will not be changed or erased in an unauthorized manner. Documentation must be provided to the government to prove compliance and risk management programs are required to ensure there are no leaks or changes of medical information.
Privacy: Key provisions that ensure medical privacy to individuals is a crucial portion of HIPAA. Individuals must have access to medical records. They must be informed of how that information will be used and there must be a way for the patient to file complaints. Providers must document their privacy procedures with regards to records and there must be a designated privacy officer. The privacy portion of the HIPAA protects the patient’s rights.
Accountability: Penalties are imposed if healthcare providers (doctors, hospitals and insurance companies) participate in waste, fraud or abuse of the healthcare system.
Reform: Software products that are used by providers must be implemented according to HIPAA standards. The reform also provides limits on pre-existing insurance provisions.
Simplification: HIPAA mandates electronic data transactions that must be handled in a secure and confidential manner. These transactions simplify the process of transferring the vast amount of medical information that is required by health providers and insurance companies.