What does the Health Insurance Portability and Accountability Act (HIPAA) primarily address?

Prepare for the Arkansas Contractor Business and Law Exam. Study with flashcards and multiple choice questions. Each question comes with hints and explanations. Ace your exam confidently!

The Health Insurance Portability and Accountability Act (HIPAA) primarily addresses providing better continuity of health insurance coverage. HIPAA was enacted primarily to safeguard the privacy and security of health information while also enabling individuals to maintain health insurance coverage when they change or lose their jobs. This aspect of HIPAA ensures that individuals can move from one employer to another without facing gaps in their health insurance, thereby enhancing the portability of health insurance benefits.

This law also includes provisions that affect how healthcare providers handle patient information, but its foundational goal relates to maintaining and ensuring coverage continuity for employees, which is why option C is the correct answer. The law facilitates the ability of individuals to keep their health insurance regardless of employment changes, which is crucial for protecting healthcare access during transitions in the workforce.

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