Legal Definitions - Health Insurance Portability and Accountability Act

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.