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The Health Insurance Portability and Accountability Act (HIPAA) was enacted by the U.S. Congress in 1996. It protects health insurance coverage for workers and their families when they change or lose their jobs in that the waiting period for the new coverage must credit the time you had with your prior coverage - "credible coverage." HIPAA provides things like guaranteed ability to transfer you're medical coverage from one employer to another, without a new preexisting clause.

According to the Centers for Medicare and Medicaid Services (CMS) website, Title I of HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs. Title II of HIPAA, the Administrative Simplification (AS) provisions, requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers. The AS provisions also address the security and privacy of health data. The standards are meant to improve the efficiency and effectiveness of the nation's health care system by encouraging the widespread use of electronic data interchange in the US health care system.

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