Certified Secure Software Lifecycle Professional 2025 – 400 Free Practice Questions to Pass the Exam

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) primarily establishes national standards for electronic healthcare transactions. HIPAA was designed to improve the efficiency and effectiveness of the healthcare system by promoting the use of electronic data interchange in healthcare. The act introduced specific provisions that demand standardized protocols for the exchange of health information, which facilitates smoother operations among healthcare providers, insurers, and patients. These standards help protect patient information while ensuring that healthcare transactions can be conducted more interoperably and securely.

The other choices pertain to different aspects of healthcare or employment but do not accurately reflect the purpose of HIPAA. While HIPAA impacts various areas including the handling of medical records and patient confidentiality, its core intent revolves around standardizing electronic transactions in the healthcare sector to improve service and data management across systems.