Final answer:
HIPAA was enacted to standardize electronic health transactions and protect patient data, ensuring confidentiality and security of personal health information.
Step-by-step explanation:
The Health Insurance Portability and Accountability Act (HIPAA), enacted in 1996, was primarily focused on standardizing electronic health transactions and protecting patient data. Among various reforms, HIPAA established mandatory regulations to ensure the confidentiality and secure handling of protected health information (PHI). This legislation addresses legal considerations regarding the confidentiality of patient records and mandates that businesses like insurance companies and healthcare providers maintain strict confidentiality of these records. HIPAA does not have provisions that directly enforce mandatory health insurance coverage, control the insurance industry's general oversight over healthcare, or establish protocols for medical malpractice lawsuits.