What is the primary purpose of the HIPAA Privacy Rule?

• A. To standardize billing and reimbursement practices.
• B. To protect the confidentiality and privacy of health information and regulate disclosures by covered entities.
• C. To issue fines for privacy breaches.
• D. To define patient rights to sue providers.

Answer: (B)

The main goal of the HIPAA Privacy Rule is to protect the confidentiality and privacy of health information and regulate how disclosures are made by covered entities. It sets limits on how protected health information (PHI) can be used and shared, requires safeguards to protect that information, and gives individuals rights over their records (such as access and the ability to request amendments). It applies to covered entities—health plans, healthcare providers who transmit PHI electronically, and healthcare clearinghouses—and it requires that business associates also comply. This rule isn’t about standardizing billing and reimbursement (that falls under other administrative simplification standards), nor does it by itself create private rights to sue providers; penalties come from enforcement actions when violations occur. So protecting privacy and controlling disclosures is the core purpose.