Medical Insurance Practice Test 2026 – Full Exam Prep Guide

The correct choice outlines specific circumstances under which a healthcare provider may share a patient's private information without needing to obtain separate consent for each instance. Under the Health Insurance Portability and Accountability Act (HIPAA) privacy rule, providers are permitted to use and disclose protected health information (PHI) for treatment, payment, and healthcare operations.

This means that if a provider is referring a patient to a specialist, billing an insurance company, or engaging in activities that contribute to healthcare operations—such as quality assessments or operational audits—they can do so without requiring explicit consent from the patient each time. This regulation is designed to facilitate care continuity and administrative efficiency while maintaining the patient's privacy rights.

The other choices do not align with the HIPAA privacy rule. For instance, requiring patient authorization for any disclosure would impede necessary care processes. Similarly, limiting disclosures only to emergencies or referrals does not reflect the broader permissions granted for treatment and operational purposes, nor does it consider the routine administrative functions involved in healthcare provision. Consent solely from the insurance company does not cover the myriad situations where patient information needs to be shared for effective care.