Certified Medical Assistant Test 2025 – 400 Free Practice Questions to Pass the Exam

The acronym HIPAA stands for the Health Insurance Portability and Accountability Act. This federal law was enacted in 1996 and primarily focuses on protecting patient health information and ensuring that health insurance coverage is maintained for individuals who change jobs or experience other life events.

The significance of the correct answer lies in its emphasis on both portability and accountability. Portability refers to the ability of individuals to retain their health insurance coverage when they move between jobs or undergo changes in their employment status. Accountability relates to the rigorous requirements set by HIPAA for the protection of patient information by healthcare providers, health plans, and other entities that handle personal health information.

Understanding HIPAA is essential for anyone working in the medical field, as it establishes key privacy standards that safeguard patients' health data, promotes secure handling of health information, and sets regulations that govern how health information may be shared, thus maintaining trust in the healthcare system.