Which of the Following Statements Is TRUE Regarding HIPAA

question 79

Multiple Choice

Which of the following statements is TRUE regarding HIPAA?

• A) It was originally designed to protect people from losing their health insurance.
• B) It has great relevance to medicine but little relevance to psychological practice.
• C) It is a simple and streamlined way of receiving professional reimbursement.
• D) It is a philosophical/ethical statement with little operational relevance.

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Definitions:

Accidents

Accidents are unplanned events that can cause damage, injury, or loss, often stemming from unforeseen circumstances or negligence.

Adverse Selection

A situation in insurance and finance where higher-risk individuals are more likely to apply for or select a particular service, leading to potential losses for the insurer or lender.

Hidden Actions

Pertains to situations in principal-agent relationships where agents' specific actions are not observable by the principal, leading to a moral hazard.

Hidden Information

Information that is not known to one party in a transaction, which can lead to an imbalance of power or adverse selection.