Health Insurance Portability and Accountability Act (HIPAA)

Meaning & Definition

The Health Insurance Portability and Accountability Act (HIPAA) is an American legislation that aims to protect sensitive information regarding patients’ health. It applies in human resource management as employees’ health records have to be kept confidential, stored securely, and accessed selectively.

Important Aspects of HIPAA

• Protects employee medical and health records.
• Helps ensure the privacy and confidentiality of HR data.
• Important for businesses with international employees and American customers.
• Avoids the chance of being hacked and penalized.
• Develops employee confidence while handling personal data.

Legal & Policy Overview 

HIPAA is not an Indian regulation, but it might be applicable to businesses that process personal health information of employees in the U.S. or have American clients.

• This applies to businesses that work with healthcare-related data of the U.S. population.
• It ensures the complete security of employees’ health-related information.
• Businesses in India could require compliance due to their business relationships with U.S. parties.