HIPAA is an acronym for the Health Insurance Portability and Accountability Act, signed into law in 1996.  The intent of HIPAA is to improve the portability and continuity of health insurance coverage, to combat waste, fraud and abuse in health care insurance and to simplify the administration of health services.

Title II of HIPAA includes Administrative Simplification which requires improved efficiency in health care delivery by standardizing electronic data interchange and requires the privacy and security of health data.

All health plans, health care clearing houses and health care providers who transmit health information in an electronic format are considered covered entities and must comply with HIPAA.