Texas All Lines Adjuster Practice Test

Which act is designed to protect consumer privacy in health insurance?

1. Health Maintenance Organization Act

2. Health Insurance Portability and Accountability Act

3. Consumer Protection Act

4. Insurance Information and Privacy Protection Act

The correct answer is: Health Insurance Portability and Accountability Act

The Health Insurance Portability and Accountability Act (HIPAA) is specifically designed to protect consumer privacy in health insurance. Enacted in 1996, HIPAA establishes national standards for the protection of individuals’ medical records and other personal health information. It sets rules regarding the handling and sharing of protected health information (PHI) by health care providers, health plans, and other entities involved in health care. Under HIPAA, individuals have the right to understand and control how their health information is used and disclosed, promoting the confidentiality and security of sensitive health data. The law also includes provisions aimed at increasing the portability of health insurance coverage, making it easier for individuals to maintain their health insurance as they change jobs. The other options, while related to health insurance or consumer rights, do not focus specifically on privacy protections in the same way that HIPAA does. For instance, the Health Maintenance Organization Act primarily concerns the regulation of health maintenance organizations and their insurance offerings, and the Consumer Protection Act broadly addresses misleading practices and consumer rights without the specific emphasis on health information. The Insurance Information and Privacy Protection Act deals with the handling of personal information in the insurance industry but is not as comprehensive in terms of health privacy as HIPAA.