Utah General Contractors Business and Law Practice Exam 2025 - Free Practice Questions and Study Guide

The statement that HIPAA does not improve health insurance portability while protecting an employee's privacy rights regarding health information is not accurate. The Health Insurance Portability and Accountability Act (HIPAA) was specifically designed to ensure that individuals could maintain health insurance coverage when they changed jobs, hence improving health insurance portability.

Additionally, HIPAA includes stringent regulations that safeguard an individual’s health information privacy, setting standards for how medical information should be handled and shared. The law not only promotes the transferability of health insurance but also imposes strict privacy protections to ensure that health information is kept confidential.

Understanding HIPAA is crucial for anyone involved in the healthcare field, as it directly impacts how medical information is managed, shared, and accessed in both the health insurance industry and healthcare providers. This is why the correct interpretation recognizes that HIPAA effectively addresses both health insurance portability and protects privacy rights.