CONGRESS ADVANCES ON HEALTH-CARE REFORM - ONE-STEP AT A TIME

In adopting the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Congress made a series of small but significant steps to ward improving access to health care benefits. The Act's centerpiece i s its new requirements for group health plans and for the health insur ance industry for assuring portability, access, and renewability of he alth insurance coverage. Of nearly equal importance is the pilot progr am established for testing the viability of medical savings accounts. Other health-related changes include adjustments in the rules governin g duplication and coordination of Medicare-related plans, recommendati ons with respect to privacy of health information of employees, an inc rease in the deduction for health insurance costs for self-employed in dividuals, and permission for unemployed persons to make withdrawals f rom IRAs and other qualified plans for certain medical services' costs . This article summarizes these and other key provisions of HIPAA.