The Health Insurance Portability and Accountability Act (HIPAA) is a federal act, which mandates the establishment of standards governing the security, and privacy of individually identifiable protected health information (PHI) that is electronically transmitted or maintained by providers, payers and clearinghouses.
While, HIPAA does not address medical transcription or medical transcriptionists directly, it does, however, state that any business or individual who provides services to a “Covered Entity” (hospital, clinic, etc.) will be deemed to be a “Business Associate” for HIPAA purposes if they access PHI during the course of their work. Business Associates must take steps, and document those steps, to secure and keep confidential the PHI while it is in their custody.

For additional information and education on the implications of HIPAA, the following Web sites may prove helpful.

Additional info on HIPPA can be had from :

HIPAA Compliance
HCFA Simplification Report
HIPAA Rule Making
HIPAA Survey Results
US Dept. of Health & Human Resources