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HIPAA

Health Insurance Portability and Accountability Act, a U.S. federal law that protects sensitive patient medical data, ensures health insurance coverage when changing jobs, and sets rules for data privacy

PeopleSocial Team
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October 12, 2026
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5 min read

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What is HIPAA? What are the core components of HIPAA? Who must Comply?

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What is HIPAA?

HIPAA (Health Insurance Portability and Accountability Act) is a U.S. federal law enacted in 1996 designed to protect sensitive patient health information from being disclosed without the patient's consent or knowledge.

What are the core components of HIPAA?

  • Privacy Rule: Dictates how Protected Health Information (PHI) can be used and disclosed by covered entities. It gives patients rights over their health data, including the right to inspect and obtain a copy of their health records.
  • Security Rule: Sets standards for safeguarding electronic Protected Health Information (ePHI). It mandates administrative, physical, and technical safeguards (e.g., data encryption, access controls).
  • Breach Notification Rule: Requires covered entities to notify patients, the Department of Health and Human Services (HHS), and in some cases the media, when unsecured PHI is compromised.
  • Omnibus Rule & Enforcement Rule: Establishes financial penalties for non-compliance and extends HIPAA obligations directly to business associates (vendors, cloud providers, contractors).

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Who must Comply?

  • Covered Entities: Healthcare providers (doctors, hospitals, clinics), health plans (insurance companies), and healthcare clearinghouses
  • Business Associates: Third-party entities that process, store, or transmit PHI on behalf of a covered entity (e.g., medical billing companies, IT services, cloud hosts)

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