The Health Insurance Portability and Accountability Act of 1996, Administrative Simplification, requires payers, providers, and claims clearinghouses (covered entities) to establish protections for storing, handling, and transmitting electronic health care information. Under the Administrative Simplification provision are the privacy regulations, transaction standards, security regulations and the national provider identifier.

The privacy regulation defines patient protected health information (PHI), identifies permitted uses and disclosures by covered entities of PHI, and specifies patient rights regarding its uses and disclosures. The privacy regulations went into effect on April 14, 2003.

The transaction standards adopt requirements for eight electronic healthcare transactions and went into effect on October 16, 2003.

The Security regulations adopt standards for the safekeeping of electronic PHI and went into effect on April 21, 2005.

The national provider identifier replaces existing provider identification systems most often used by third party payers and went into effect on May 25, 2005.


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