What does HIPAA aim to improve?

HIPAA, or the Health Insurance Portability and Accountability Act, was enacted primarily to enhance the efficiency and effectiveness of the healthcare system. It achieves this by standardizing the electronic transmission of health information and safeguarding patient data privacy and security. One of its main goals is to streamline the administrative processes associated with healthcare, thereby reducing costs and improving the quality of care.

The act aims not only to provide better access to health insurance but also to ensure that individuals’ health information is handled securely. This focus on improving the healthcare system's operational aspects is foundational to HIPAA's mission, impacting healthcare providers, insurers, and patients alike by setting forth regulations that promote efficient information flow while protecting sensitive health data.