Final answer:
The most significant change in the healthcare industry from HIPAA was due to the Administrative Simplification section, which mandated electronic medical records and introduced rules for protecting patient information.
Step-by-step explanation:
The most major change to the health care industry as a result of the Health Insurance Portability and Accountability Act (HIPAA) was largely attributed to the provisions under the Administrative Simplification portion of the act. Administrative Simplification set the stage for significant reforms in healthcare transactions, code sets, and identifier standards. It mandated the shift to electronic medical records (EMRs), aiming to reduce administrative costs and enhance efficiency within healthcare systems.
Another aspect of Administrative Simplification was the introduction of privacy and security rules to protect patient information, ensuring that entities such as insurance companies and healthcare providers maintain strict confidentiality of patient records. This not only safeguards patient privacy but also streamlines the way health information is managed and shared among healthcare providers, contributing to the ultimate goal of curbing the rise in healthcare costs.
The Affordable Care Act (ACA), also made other regulatory changes such as implementing a cap on administrative costs for healthcare providers, furthering the impact of HIPAA towards cost control and system efficiency within the healthcare industry.