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HIPAA General Information

The Act

In August 1996, President Clinton signed into the law the Health Insurance Portability and Accountability Act (HIPAA). The Act included provisions for health insurance portability, fraud and abuse control, tax related provisions, group health plan requirements, revenue offset provisions, and administrative simplification requirements.

Administrative Simplification

About 25% of each health care dollar is spent on administrative overhead, which includes such activities as enrolling beneficiaries in a health plan, paying health insurance premiums, and filing claims. One part of this Act, referred to as Administrative Simplification (AS), is aimed at reducing administrative costs and burdens in the health care industry. It requires the Department of Health and Human Services (HHS) to adopt national uniform standards for the electronic transmission of certain health information. The health care industry estimates that full implementation of the provisions of AS could save as much as $9 billion per year on administrative overhead, while improving efficiency and quality of health care services. For more information on Administrative Simplification, go to the Centers for Medicare and Medicaid Services (CMS) HIPAA - General Information website.

* For TRICARE HIPAA Privacy and Security pages, please click here.

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