HIPAA stands for the Health Insurance Portability and Accountability Act, a U.S. federal law enacted in 1996. It establishes national standards to protect Protected Health Information (PHI) and applies to healthcare providers, insurers, clearinghouses, and business associates handling PHI. The law ensures that personal medical data is kept confidential and secure.

Why HIPAA Compliance Matters

HIPAA compliance is mandatory for any organization handling PHI in the United States. It includes strict rules for how health data is accessed, used, disclosed, and stored. Non-compliance can result in significant penalties, including fines ranging from $100 to $50,000 per violation, up to $1.5 million per year. HIPAA also supports patients’ rights, allowing them to access, correct, or request limits on their health data use. Compliance demonstrates accountability and builds trust in healthcare and related digital services.

Key Rules and Requirements

HIPAA has several core components:

• Privacy Rule: Governs how PHI is used and disclosed, and gives patients rights over their data

• Security Rule: Requires administrative, physical, and technical safeguards for electronic PHI (ePHI)

• Breach Notification Rule: Mandates notification to affected individuals and regulators in the event of a data breach

• Enforcement Rule: Details the procedures and penalties for non-compliance

To meet HIPAA requirements, organizations must conduct regular risk assessments, train staff, encrypt sensitive data, and establish incident response plans.