Privacy and Security Rules in Health Information Management

Overview

This paper examines the Health Insurance Portability and Accountability Act (HIPAA) and its two primary regulatory components: the Privacy Rule and Security Rule. It analyzes how these frameworks establish national standards for protecting patient health information while enabling secure healthcare delivery and interoperability. The paper argues that HIPAA remains essential for balancing information sharing needs with robust protections against misuse, breaches, and unauthorized access.

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Privacy and Security Rules in Health Information Management

Lelia Settle

Indiana Tech

HIT 1200: Introduction to Health Information Management

Stacie Kreinbrink

March 4, 2026

Privacy and Security Rules in Health Information Management

The Health Insurance Portability and Accountability Act (HIPAA) was enacted in 1996 to improve the efficiency and effectiveness of the healthcare system. Originally designed to ensure employees could maintain health insurance coverage when changing jobs, HIPAA evolved to establish national standards for protecting the privacy and security of individuals' health information (U.S. Department of Health and Human Services, 2024a). Today, it plays a critical role in safeguarding protected health information (PHI) while enabling secure electronic transactions and interoperability in healthcare delivery.

The HIPAA Privacy Rule, effective in 2003, sets national standards for the use and disclosure of PHI. It defines PHI as any individually identifiable health information held by a covered entity or business associate, including names, dates, medical record numbers, and clinical data. The rule grants patients rights such as access to their records, amendment of inaccurate information, and an accounting of disclosures (U.S. Department of Health and Human Services, 2024b). It also requires covered entities to limit uses and disclosures to the minimum necessary for treatment, payment, and healthcare operations (TPO), provide a notice of privacy practices, and obtain patient authorization for most non-TPO disclosures.

The HIPAA Security Rule, finalized in 2005 and effective in 2006, focuses specifically on protecting electronic protected health information (ePHI). It requires covered entities and business associates to implement administrative, physical, and technical safeguards.

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