Louisiana Contractors License Practice Exam

What does HIPAA primarily protect?

1. Employee rights in the workplace.

2. The confidentiality of patient health information.

3. Employer's financial records.

4. Insurance company regulations.

The correct answer is: The confidentiality of patient health information.

HIPAA, or the Health Insurance Portability and Accountability Act, is primarily focused on protecting the confidentiality and privacy of patient health information. This federal law was enacted to ensure that individuals' medical records and other identifiable health information are properly protected while allowing the flow of health information needed to provide high-quality health care. HIPAA sets standards for how healthcare providers, health plans, and other entities handle sensitive patient information, requiring them to implement various safeguards to ensure this data remains confidential and secure. The other options pertain to different areas: employee rights relate to labor laws, financial records involve accounting and privacy legislation, and insurance regulations concern operational compliance in the insurance sector, none of which are the primary focus of HIPAA.