Health Insurance Portability and Accountability Act (HIPAA)
What Does 'Health Insurance Portability and Accountability Act (HIPAA)' Mean?
The Act, in part, specifies requirements that a Long-Term Care Insurance policy must meet in order that premiums paid may be deducted as medical expenses, and benefits paid not to be considered taxable income.
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The Health Insurance Portability and Accountability Act (HIPAA) of 1996, also known as the Kennedy–Kassebaum Act, was enacted by the 104th United States Congress and signed by President Bill Clinton in 1996. It became law on January 1, 1997.
HIPAA outlines important requirements for Long-Term Care Insurance policies to meet in order to be tax-qualified. Any policy that meets these requirements is eligible for tax deductions as a medical expense. Benefits are not considered taxable income either.
Other areas of HIPAA cover medical privacy and protect health insurance coverage for workers and their families when they change or lose their jobs. Both protections are essential and significant.