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The HIPAA was enacted by congress in the year 1996 whose main intent was to protect worker who had the capacity to continue their health insurance after they changed their jobs or their health insurance. HIPAA prohibits insurance companies and employers to imposing preexisting conditional clauses. This essay will briefly detail the future of the Medicare system and HIPAA’s role in the healthcare insurance.

HIPAA is funded by the federal government. It took about five years for HIPAA to become effective and a further two years to make it compliance. It has been costly to implement HIPAA and will contiue into the future as congress realized that it never factored in costs in implementing it.

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With the US facing a challenging socioeconomic concerning the aging population and the desire for new treatments and cures of various illnesses, policy makers need to reexamine the HIPAA Privacy Rule as aging may mean more Medicare costs. This is because the aging population will in the near future be a major driver of healthcare spending.

The HIPAA Act established an inclusive program that could be used to combat fraud and abuses that may be committed against public or health plans. The legislation requires that there be established of a national Health Care Fraud and Abuse Control Program (HCFAC) that is designed to coordinate the state and federal government activities with respect to fraud or abuse. Thus, the HHS and DOJ are required to avail a detailed report to the Medicare Trust Fund of such deposits. This will in turn reduce the number of fraud cases against insurance money.

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The HIPAA act of 1996 has established standards for confidentiality, transmissibility and security of healthcare information. This means that there are three types of standards created by HIPAA: security, privacy and administrative implication.  These regulations have had a major impact in the day to day running of health centers and for every person who pays for health care. 

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