Final answer:
The court case that held that federal privacy laws like HIPAA may preempt stricter state privacy laws is National Federation of Independent Business v. Sebelius.
Step-by-step explanation:
The court case that held that federal privacy laws like HIPAA may preempt stricter state privacy laws is National Federation of Independent Business v. Sebelius. In this case, the Supreme Court found that Congress had the power to apply the mandate to purchase health insurance under its enumerated power to tax. This decision established that federal privacy laws can override state privacy laws when there is a conflict.