Health Insurance Portability and Accountability Act (HIPAA) is a major health policy currently followed in health care centers, in United States. The health policy is responsible for health insurance of workers and citizens. The Act became a policy in August 21, 1996 after President Clinton signed it to be a law where it became documented in Public Law 104-191. The policy safeguards and protects the health information of patients from unauthorized person without legal permission from the patient. The purpose for the formation of the Act was to increase health care system’s effectiveness and efficiency. It also recommends that a standard electronic device should be used to store all medical information of a person. The deadline for embracing the act was September 23, 2013. The health policy incorporates some ethical issues. These ethical issues include respect of the patient’s health information, confidentiality and honesty.