Certified Cloud Security Professional (CCSP) Practice Exam

What is the Health Insurance Portability and Accountability Act of 1996 (HIPAA) known for?

1. Regulating the access and portability of health insurance

2. Setting national standards for electronic healthcare transactions

3. Defining privacy controls in cloud computing

4. Protecting investor interests in healthcare organizations

The correct answer is: Setting national standards for electronic healthcare transactions

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is primarily known for establishing national standards for the protection of sensitive patient health information. The correct response emphasizes that HIPAA sets nationwide standards for electronic healthcare transactions. This aspect of the law was crucial in facilitating the electronic exchange of healthcare data, thereby improving efficiency and reducing costs within the healthcare system. HIPAA's core goal includes ensuring the confidentiality, integrity, and security of health information, particularly during electronic transactions. Thus, it mandates that health care providers and organizations comply with specific standards, which streamlines processes in a highly regulated industry where patient information must be handled with exceptional care. Other options touch on various aspects of healthcare regulation but do not accurately capture the primary objective of HIPAA. For instance, while HIPAA does address access and portability of health insurance, that is not its main focus. Similarly, although it relates to privacy considerations, it does not specifically define privacy controls in cloud computing, and protecting investor interests is outside the scope of this legislation.