Which statement about HIPAA is correct?

• A. It is optional policy.
• B. It governs hospital billing codes only.
• C. It protects patient privacy and confidential health information; ensures confidentiality and proper handling of PHI.
• D. It applies only to surgeons.

Answer: (C)

HIPAA is a federal law that protects patient privacy and the handling of protected health information (PHI). It is not optional; covered entities such as providers, hospitals, health plans, and their business associates must follow rules that regulate how PHI is used, disclosed, stored, and transmitted. HIPAA covers PHI in any form—oral, paper, or electronic—and sets standards for confidentiality, security, and breach notification. It goes beyond hospital billing codes and applies to a wide range of health-care entities, not just surgeons. So the statement that HIPAA protects patient privacy and confidential health information and ensures proper handling of PHI is correct.