On August 21, 1996, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) was signed into law by President Bill Clinton. The original purpose of the Act, which amended the Internal Revenue Code of 1986, was to improve the portability and continuity of health insurance coverage, combat waste, fraud, and abuse, promote the use of medical savings accounts, improve access to long-term care services, and simplify the administration of health insurance.

At the time, there were no such things as electronic medical records (EMR), electronic Health Information Exchange (HIE), Covered Entities or Business Associates. Healthcare administration and patient privacy was complicated by varying rules and regulations across states, and a lack of uniformity at the federal level. Experts recognized the need to standardize regulations, better protect patient privacy and allow employees to retain health coverage when leaving their jobs. They also recognized the increased use of technology, and foresaw its coming impact on the healthcare industry. Continue Reading