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Simple English definitions for legal terms
Health Insurance Portability and Accountability Act
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A quick definition of Health Insurance Portability and Accountability Act:
Health Insurance Portability and Accountability Act (HIPAA) is a law that helps protect people's health insurance. It makes it easier for people to keep their insurance when they change jobs or have a new family member. It also stops insurance companies from denying coverage because of a person's medical history. HIPAA helps small businesses provide insurance to their employees too.
A more thorough explanation:
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law passed in 1996 that provides additional health insurance protections to employees. It helps employees to:
- Limit the effect of preexisting conditions on their ability to obtain insurance
- Enroll a new dependent acquired by birth, adoption, or marriage
- Maintain insurance coverage while changing jobs
- Help businesses employing fewer than 50 workers to obtain group insurance plans
For example, if someone has a preexisting condition like diabetes, HIPAA ensures that they cannot be denied health insurance coverage because of it. Additionally, if an employee gets married or has a child, they can enroll them in their health insurance plan without any waiting period. HIPAA also allows employees to keep their health insurance coverage when they change jobs, which can be especially helpful if they have a preexisting condition.