American Academy of Professional Coders (AAPC) Practice Exam

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What is Title II of HIPAA also known as?

Healthcare Reforms
Administration Simplification
Fraud Prevention Strategies
Medical Coding Standards

The correct answer is: Administration Simplification

Title II of HIPAA is known as Administration Simplification. This section primarily aims to reduce the administrative burdens and costs associated with healthcare by standardizing electronic healthcare transactions and protecting the privacy and security of health information. It establishes national standards for the processing of health information and mandates the confidentiality of protected health information (PHI). The focus on administrative simplification is intended to streamline healthcare operations and increase efficiency, which is crucial in managing patient data in a compliant manner. By standardizing codes, formats, and protocols for electronic health transactions, Title II facilitates better communication and interoperability among healthcare providers, payers, and patients, ultimately aiming to improve healthcare delivery and patient outcomes. Other options, while related to healthcare, do not accurately reflect the content or goals of Title II.