Texas Department of Aging and Disability Services
Resources for DADS service providers
Health Insurance Portability and Accountability Act
Other DADS resources

Health Insurance Portability and Accountability Act

The HIPAA (Health Insurance Portability and Accountability Act) law was passed by Congress in 1996. This law has several parts.

Privacy

One of the parts allows the privacy rule. The privacy rule creates a base of federal safeguards for the privacy of health information. The rule does not take the place of a federal, state, or other law that gives even greater privacy rights.

Most health plans, including Medicaid, and health care providers that are covered by the privacy rule, had to start following it by April 14, 2003. The state schools that provide residential services for people with mental retardation are considered covered entities under the privacy rule.

Electronic Data Interchange (EDI)

EDI is part of the HIPAA Administrative Simplification (AS) provision, which requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers. AS provisions address both security and privacy of health data. The purpose of these standards is to improve the efficiency and effectiveness of the health care system by encouraging the use of electronic data interchange in health care.

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Updated: May 3, 2012