Final answer:
The correct answer to the question is D. HIPAA, which provides protections for the privacy and security of patient health information, especially concerning electronic transmission.
Step-by-step explanation:
The federal legislation mentioned in the question, which was enacted to improve the efficiency and effectiveness of health care systems and involves components related to privacy, security, and electronic transmission standards for health information, is D. HIPAA (Health Insurance Portability and Accountability Act).
HIPAA passed in 1996, is designed to protect patient information by setting standards that organizations such as insurance companies and healthcare providers must follow. This includes maintaining the confidentiality of patient records and ensuring privacy in the sharing of electronic medical records (EMRs), which is one method used to reduce healthcare costs and improve care quality.