What is the purpose of the Health Insurance Portability and Accountability Act (HIPAA)?

The primary purpose of the Health Insurance Portability and Accountability Act (HIPAA) is to provide improved portability and continuity of health insurance coverage. This ensures that individuals can maintain their health insurance coverage when they change or lose their jobs, thereby protecting them from the potential negative impacts of losing health insurance benefits due to employment changes. HIPAA also includes provisions that protect the privacy and security of an individual's health information, making it crucial in the healthcare landscape.

While regulating the healthcare industry is a broader function that includes various laws and regulations, HIPAA specifically targets the portability of health insurance. Establishing Medicare guidelines is the responsibility of different provisions within the healthcare legislation and not the core focus of HIPAA. Lastly, enhancing health insurance premiums is not a purpose of HIPAA; rather, it aims to facilitate better health coverage accessibility without imposing cost increases. Therefore, the correct response centers around the focus on continuity of coverage for individuals in the healthcare system.