What is the primary purpose of the HIPAA Privacy Rule?

• A. Set patient billing rates
• B. Establish federal protections from personally identifiable health information
• C. Allow unrestricted sharing
• D. Regulate medical malpractice

Answer: (B)

The main idea is that the HIPAA Privacy Rule protects the confidentiality of health information. It establishes federal protections for personally identifiable health information (PHI), defining who can access it, when it can be shared, and under what circumstances. It gives patients rights over their records—such as access, correction, and an accounting of disclosures—and it sets rules for covered entities (like providers and health plans) and their business associates about how PHI can be used or disclosed. The rule also allows disclosures without patient authorization for treatment, payment, and healthcare operations, but it applies the minimum necessary standard to limit unnecessary sharing and requires safeguards to protect PHI. It is not about setting billing rates, it does not authorize unrestricted sharing, and it does not regulate medical malpractice.