Massachusetts Health & Accident Insurance Practice Exam

What does HIPAA protect individuals against when they change jobs?

1. Loss of health care coverage

2. Penalties for late insurance claims

3. Increases in premium costs

4. Taxation on insurance benefits

The correct answer is: Loss of health care coverage

HIPAA, or the Health Insurance Portability and Accountability Act, was established primarily to protect sensitive patient health information and to provide rights and protections concerning health insurance coverage. One of its key provisions is the protection against the loss of health care coverage when individuals change jobs. This means that individuals cannot be denied health insurance or charge higher premiums due to pre-existing health conditions as they transition from one employer's health plan to another. This protection is crucial for individuals who may have ongoing health issues, ensuring that their health status does not prevent them from obtaining adequate healthcare coverage when they start a new job. Unlike penalties for claims, premium increases, or taxation on benefits, which are not directly addressed by HIPAA, the focus on maintaining health coverage continuity is a significant aspect of the law as it relates to job changes.