Health Insurance Portability and Accountability Act of 1996

Congress created the first guarantee of a federal policy to govern the privacy of health information in electronic form by passing the Kennedy-Kassebaum Health Insurance Portability and Accountability Act. The Act contains a section known as "Administrative Simplification," which mandates the development and adoption of standards for electronic exchanges of health information. It also requires that Congress or the Secretary of Health and Human Services develop privacy rules to govern such electronic exchanges; these rules, however, may not be in place before the electronic system is implemented. Provisions of the Act mandating the speedy development and adoption of standards for electronic exchanges of health information are troublesome given the lack of strong, enforceable laws protecting patient privacy; the Act required either the Congress or the Executive Branch to enact privacy rules within before August 21, 1999. In October of 1999, after Congress failed to meet its self-imposed deadline, the Clinton administration issued the first set of federal privacy rules to protect medical information. The proposal, known as the Clinton-Gore initiative, aims to require consumer consent before companies share medical data or detailed information about consumer spending habits. The proposal also requires companies to disclose their privacy policies prior to engaging in data transactions with users. Proposed Legislation [ .shtml ] [ WordPerfect ]. For complete information, go to the Georgetown University Health Privacy Project.