FERPA and HIPAA Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What does the transaction rule refer to?

The formatting of medical prescriptions

The standard formatting for electronic health information transactions

The transaction rule refers specifically to the standard formatting for electronic health information transactions. This rule is part of the Administrative Simplification provisions of the Health Insurance Portability and Accountability Act (HIPAA). Its purpose is to streamline the electronic exchange of health information, ensuring that different organizations can share patient data efficiently and securely. By establishing standardized formats and codes for electronic transactions such as claims submissions, eligibility inquiries, and payment processing, the transaction rule facilitates better communication and reduces administrative costs in the healthcare system. This standardization is essential for promoting interoperability among various healthcare entities, allowing for a smoother transfer of information that complies with regulatory requirements.

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The recording of patient conversations

The storage of hard copy medical records

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