HIPAA provides the following protections for employees and their families:
Increase healthcare coverage starting a new job
Helps workers obtain a medical record
Help workers purchase healthcare
Reduces workers’ probability of losing existing healthcare coverage
The correct answer and explanation is:
The correct answer is: Reduces workers’ probability of losing existing healthcare coverage.
HIPAA (Health Insurance Portability and Accountability Act) was designed to protect employees and their families by ensuring continuity of health coverage. One of its key provisions is the protection against losing healthcare coverage when changing jobs or experiencing other qualifying life events. Before HIPAA, workers faced the risk of losing their insurance coverage when transitioning between employers. HIPAA introduced provisions that allow individuals to maintain their health insurance coverage even when changing jobs, provided they have had prior coverage under a group health plan.
In addition to protecting against loss of coverage, HIPAA also ensures that workers cannot be denied coverage due to pre-existing conditions, though this provision was later supplemented by the Affordable Care Act (ACA). Employers must also provide clear notices about health plans and ensure the protection of sensitive health information through privacy and security measures.
Another important protection under HIPAA is the ability to transfer or “port” health insurance. This means that if a worker had health insurance coverage under one employer and moves to another, the new employer cannot exclude them from the plan due to prior health issues. This provision reduces the likelihood of a break in coverage, which could lead to gaps in treatment or increased costs for medical services.
Overall, HIPAA focuses on maintaining insurance coverage continuity and safeguarding sensitive health information, thus reducing the risk that individuals will lose access to healthcare when they need it most.