Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

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What does the privacy of PHI encompass?

  1. Only medical records of patients

  2. Only financial records of patients

  3. Both medical and financial records of patients

  4. Only records concerning treatment

The correct answer is: Both medical and financial records of patients

The privacy of Protected Health Information (PHI) encompasses both medical and financial records of patients because PHI is defined broadly under HIPAA regulations. It includes any individually identifiable health information that is created, received, maintained, or transmitted by a covered entity. This definition encompasses a wide range of information, including medical histories, laboratory results, insurance information, and billing records, all of which can contain sensitive details regarding an individual’s health status and access to care. In this context, option C accurately reflects the comprehensive nature of PHI as it relates not just to medical treatments but also to financial aspects of healthcare, such as payment records or insurance claims. Both types of records are essential in protecting the rights and privacy of patients under HIPAA's mandates, ensuring that individuals' health and financial information is kept confidential and secure from unauthorized access.

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