Arizona Life and Health Practice Exam

What do the HIPAA portability rules primarily address?

1. Assigning beneficiaries to insurance policies

2. Reducing health care costs for employers

3. Changing premiums for individuals with prior conditions

4. Eliminating pre-existing conditions under new plans

The correct answer is: Eliminating pre-existing conditions under new plans

The HIPAA portability rules primarily address the issue of pre-existing conditions by ensuring that individuals who change health insurance plans do not face penalties or exclusions based on their prior health status. These rules were established to help individuals maintain continuous health coverage and protect them from discrimination based on their medical history when they move from one plan to another. By eliminating the application of pre-existing condition exclusions under new plans, HIPAA allows individuals greater freedom and security in seeking new coverage without the fear of being denied benefits for conditions that existed before they enrolled in a different plan. This is pivotal in promoting health care access and reducing the potential gaps in coverage that could arise from switching jobs or insurance providers. The other options pertain to different aspects of health insurance that are not directly associated with the portability rules of HIPAA. Assigning beneficiaries and changing premiums typically involve different regulations and considerations outside of the scope of HIPAA.