Which act is aimed at reducing healthcare fraud and abuse?

The Health Insurance Portability and Accountability Act (HIPAA) is indeed the legislation focused on reducing healthcare fraud and abuse. While HIPAA primarily addresses data privacy and security of health information, it includes provisions designed to enhance the integrity of the healthcare system. One significant aspect of HIPAA is its enforcement mechanisms, which hold healthcare providers accountable for compliance with regulations that prevent fraudulent activities.

Moreover, HIPAA established stricter penalties for healthcare fraud and set standards for electronic health transactions, ultimately aiming to protect against misuse of patient information and related fraudulent activities. Although other laws also contribute to combating fraud within the healthcare system, such as the Affordable Care Act, HIPAA specifically establishes measures that directly address issues surrounding fraud and abuse in the handling of healthcare data, ensuring greater accountability among providers.