Final answer:
HIPAA protections apply to employer-based group health insurance, with employer-sponsored health plans required to protect patient health information. Individual health insurance plans are not covered in the same manner. The Affordable Care Act introduced the individual mandate, requiring everyone to have insurance or face a penalty, and prevents denial of coverage based on preexisting conditions.
Step-by-step explanation:
HIPAA protections apply only to employer based and commercially issued group health insurance. No similar law exists for individuals seeking health insurance on their own. The correct answer is a) Employer. The Health Insurance Portability and Accountability Act (HIPAA) has regulations that protect patient health information and apply to employer-sponsored health plans. Conversely, individual health insurance plans are not covered by HIPAA in the same way. The individual mandate provision of the Affordable Care Act (ACA) attempts to address coverage issues by requiring everyone to have insurance or pay a penalty, underscoring the difference between group health plans and individual plans.
In the U.S. health insurance market, the common solution to the adverse selection problem is selling health insurance through groups based on place of employment. This approach, including the one offered by the ACA, effectively combines individuals with varying health risks, thereby reducing the insurance company's risk of insuring only high-risk individuals. Additionally, the ACA took steps to mandate that Americans cannot be denied by providers based on preexisting conditions, offering another layer of protection and inclusion for individuals outside of employer-sponsored plans.