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In very basic terms, HIPAA has two primary components to which hospitals, health plans, healthcare "clearinghouses," and healthcare providers must conform: 1) Administrative simplification, which calls for use of the same computer language industry-wide; 2) Privacy protection, which requires healthcare providers to take reasonable measures to protect patients' written, oral, and electronic information. Congress passed HIPAA in an effort "to protect the privacy and security of individually identifiable health information. "1 Additionally, lawmakers "sought to reduce the administrative costs and burden associated with healthcare by standardizing data and facilitating transmission of many administrative and financial transactions...
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