Comparing HIPAA & GLBA Essay Example | Topics and Well Written Essays - 500 words

Comparing HIPAA & GLBA - Essay Example HIPAA was signed into law in 1996. Electronic transactions have also been under the scope of this act due to the fact that information systems have been dramatically evolving, which poses a risk for the avenues of how information is transmitted. Since HIPAA puts strict regulations in patient information, blue cross blue shield was force to renovate its strategy. Due to HIPAA and ACA, blue cross blue shield was forced to think of new strategies. For example, it used the benchmark principle to tell the hospitals to reduce its cost by 10%, which was indirect method. A more direct approach would be to tell the hospital to directly cut the staff. In this particular scenario, blue cross blue shield gave full control to the hospital to reduce its cost which could mean eliminating paper waste, cutting salaries, reducing leisure activities. Both HIPAA and ACA influence insurance and hospitals to securely dispose medical information of patients. A challenge for any healthcare provider and its subsidiaries is the fact that fraud has become a serious issue in this era. In order to combat fraud, Congress enacted HIPPA and the ACA have implemented some procedures to combat fraud. The HIPAA and ACA are both critical legislations that ensure patient privacy. This is a key element to prevent fraud in most cases. Individuals seeking information must submit their PHI or SHI in order to prevent other individuals from claiming insurance compensation on behalf of others. Similarly to the HIPAA, the Gramm-Leach-Bliley Financial Modernization Act is designed to facilitate and provide integrity to consumers against financial institutions that offer products. Undoubtedly, protecting the privacy of consumer information is critical towards harnessing the growth of business and protecting the integrity of information that is transferred. Thus, the GLB act not only covers federal banking agency