Medical insurance has become one of the most important insurance policies today. Due to the increase in lifestyle related diseases, medical insurance has become an economical way to reduce the burden of the increased cost. Under these circumstances the United States government introduced the Hipaa law.Hipaa refers to the health insurance portability and accountability act. It is a federal law that requires that a patient’s personal health information be protected. It also provides for the physical and electronic security of any patients personal information regarding to his health. In addition, Hipaa also provides for the simplification of billing in addition to other transactions related to a specific person.
Since Hipaa is designed to protect a patient’s personal health information, then Hipaa acts as a secondary database for the patient concerning the patient’s health. Due to this fact Hipaa impacts positively on the patient since it prevents the disclosure of the persons information to third parties without his/her full authorization. Thus it gives more control to the patients on the use and subsequent of the information to third parties. In addition, Hipaa provides for the civil and criminal actions against the violators of its principles.