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What is HIPAA?

Picture of Form Vessel By  Form Vessel  ·  1 minute read

This article explains the Health Insurance Portability and Accountability Act (HIPAA), why it matters, and what it means for organizations handling sensitive health information.

What HIPAA Is

HIPAA is a U.S. law passed in 1996. Its main purpose is to protect Protected Health Information (PHI). PHI includes any data that can identify an individual and relates to their health, care, or payment for care. Examples:

  • Name and date of birth linked to a diagnosis

  • Medical test results

  • Insurance billing records

HIPAA applies to covered entities (like healthcare providers, insurers, and clearinghouses) and their business associates (vendors or partners that handle PHI).

Why HIPAA Matters

Every healthcare organization collects data that could expose patients to risk if mishandled. PHI in the wrong hands can lead to:

  • Identity theft

  • Insurance fraud

  • Loss of trust from patients

For organizations, violations can result in heavy fines, lawsuits, and reputational damage.

Core HIPAA Requirements

HIPAA has several key rules:

  1. Privacy Rule – Sets limits on how PHI is used and disclosed.

  2. Security Rule – Requires safeguards for electronic PHI (ePHI), including:

    • Encryption of data in transit and at rest

    • Audit logs

    • Access controls

  3. Breach Notification Rule – Requires notifying affected individuals and regulators if PHI is compromised.

  4. Enforcement Rule – Defines penalties and investigation processes.

Common Compliance Gaps

Most risks come from everyday tools not designed for HIPAA compliance. For example:

  • Standard contact forms on websites do not encrypt submissions

  • Email without encryption can expose PHI

  • Lack of a signed Business Associate Agreement (BAA) with vendors handling PHI leaves organizations non-compliant

The Solution

To stay compliant, organizations need tools built for HIPAA. This means:

  • Forms that encrypt PHI automatically

  • Secure storage and access controls

  • Signed BAA with any service provider handling PHI

Form Vessel provides exactly that. It allows healthcare providers to create HIPAA-compliant web forms quickly, ensuring encryption, audit logging, and BAAs are in place.

Key Takeaways

  • HIPAA protects PHI and is mandatory for U.S. healthcare organizations and their partners.

  • Violations carry severe financial and legal consequences.

  • Standard web tools are not designed for HIPAA compliance.

  • Form Vessel solves these risks by providing a secure, compliant way to collect patient information.