Medical Coding Practice Test 2025 - Free Medical Coding Practice Questions and Study Guide

The acronym "HIPAA" stands for the Health Insurance Portability and Accountability Act. This act was enacted in 1996 and primarily serves two key purposes: to protect the privacy and security of individuals' health information, and to ensure that individuals maintaining health insurance can continue their coverage when they change jobs or become unemployed.

In the context of medical coding, HIPAA is crucial because it establishes standards for electronic health transactions and requires the safeguarding of sensitive patient data. Medical coders must be aware of and comply with HIPAA regulations to ensure that patient information is handled and transmitted securely, maintaining the confidentiality and integrity of healthcare data.

The other options represent incorrect expansions of the HIPAA acronym. Understanding the accurate terminology is essential for professionals in healthcare-related fields, particularly in coding, billing, and administration, where compliance with HIPAA guidelines is mandatory.