Health Insurance Portability and Accountability Act (HIPAA)
The Health Insurance Portability and Accountability Act (HIPAA) was an important law that set specific standards for tax-qualified Long-Term Care Insurance policies.
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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.