Certified Healthcare Leader (CHL) Practice Exam 2025 – Complete Prep Resource

The correct choice is indeed the Health Insurance Portability and Accountability Act. This legislation was enacted in 1996 to ensure that individuals' health information is protected while also enabling the continuation of health insurance coverage when individuals change or lose their jobs.

HIPAA addresses both the portability of health insurance, allowing workers to maintain their health coverage despite changes in employment, and accountability, ensuring healthcare providers and organizations safeguard sensitive patient information against misuse and breaches. This dual focus on portability and accountability fundamentally shaped healthcare practices, making compliance with data protection regulations a priority for healthcare providers and insurers.

In summary, the significance of HIPAA lies in its role in protecting patient information while facilitating access to health insurance across job transitions, which is why the second option is the accurate representation of what HIPAA stands for.