Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
The Health Insurance Portability and Accountability Act (HIPAA) is designed to improve group health coverage by:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
HIPAA's portability rules reduce 'job lock' by limiting how a new group plan can apply pre-existing condition exclusions. If an individual had prior creditable group coverage without a significant break, the new plan must credit that coverage toward any pre-existing condition limitation. HIPAA also requires certificates of creditable coverage and guarantees renewability of group coverage. Its focus is continuity of coverage, not an employer mandate to offer insurance.
Why the other options are wrong
- B) HIPAA does not require employers to offer health insurance; that is the ACA's employer shared responsibility concept.
- C) HIPAA does not set premiums; state regulators oversee commercial group rate filings.
- D) HIPAA includes portability and privacy rules but does not displace state regulation of licensed insurers and agents.
Memory hook
HIPAA keeps coverage moving with you — prior creditable coverage counts at the next job.