Small business insurance: HIPAA specifics

HIPAA specifics

The Health Insurance Portability and Accountability Act of 1996 includes limited protections, according to the Centers for Medicare & Medicaid Services Web site.

For employees, HIPAA may:

Increase the ability to get health coverage for themselves and their dependents if they start a new job;

Lower the chance of losing existing health care coverage, whether they have that coverage through a job or through individual health insurance;

Help maintain continuous health coverage for themselves and their dependents when they change jobs; and

Help them buy health insurance coverage on their own if they lose coverage under an employer's group health plan and have no other coverage available.

Among its specific protections, HIPAA:

Limits the use of pre-existing condition exclusions;

Prohibits group health plans from discriminating by denying coverage or charging extra for coverage based on the employee's or family member's past or present poor health;

Guarantees certain small employers, and certain individuals who lose job-related coverage, the right to purchase health insurance; and

Guarantees, in most cases, that employers or individuals who purchase health insurance can renew the coverage regardless of any health conditions of individuals covered under the insurance policy.

Among its limitations, HIPPA:

Does not require employers to offer or pay for health coverage for employees or family coverage for their spouses and dependents;

Does not guarantee health coverage for all workers;

Does not control the amount an insurer may charge for coverage;

Does not require group health plans to offer specific benefits;

Does not permit people to keep the same health coverage they had in their old job when they move to a new job;

Does not eliminate all use of pre-existing condition exclusions.