The main aim of HIPAA is to protect the individual's health information during its
transmission by a covered entity or its business associate, in any form, whether
electronic, paper or oral. The Privacy Rule calls this information as Protected
Health Information (PHI). If a system handles billing as well as client tracking,
then it must support HIPAA standards. Apart from this, automation, secure transaction,
privacy are expected to result in administrative efficiency.
E-billing is facing serious threats due to hackers. HIPAA applies to any organization
that transmits any electronic billing information such as invoices, or information
needed to look up insurance information to any health insurance company, including
Medicare or Medicaid. This means that HIPAA typically regulates organizations providing
counseling, therapy or other services that need to bill insurance companies.