Final answer:
Healthcare fraud and abuse are federal criminal offenses under the Health Insurance Portability and Accountability Act (HIPAA), which includes provisions for patient privacy protection and sets penalties for violations.
Step-by-step explanation:
The statement that healthcare fraud and abuse is a federal criminal offense that can have significant penalties attached to it is addressed in the Health Insurance Portability and Accountability Act, commonly known as HIPAA. Enacted in 1996, HIPAA sets the standards for the protection of patient information, including maintaining strict confidentiality of patient records. It also comprises rules against healthcare fraud and abuse, making them federal offenses with serious potential consequences for violations.
HIPAA requires entities that handle health information, such as insurance companies and healthcare providers, to ensure the privacy and security of patient data. This act not only protects patient privacy but also includes provisions aimed at reducing healthcare fraud and abuse. This includes criminal penalties for offenses such as fraudulently billing Medicare or Medicaid, or engaging in unlawful conduct related to healthcare transactions.