Which act established federal standards for health insurers and employer plans?

The correct answer is the Health Insurance Portability and Accountability Act, commonly known as HIPAA. This legislation was enacted in 1996 and established federal standards that focus on protecting patient information while also ensuring the portability of health insurance coverage.

HIPAA includes provisions that prevent discrimination based on health status, ensuring that individuals don't lose their health insurance coverage when they change jobs or face other life changes. It sets national standards for the protection of individually identifiable health information, thereby promoting confidentiality and security in the management of medical data.

In summary, the significance of HIPAA lies in its dual focus on protecting patient privacy and ensuring that individuals maintain access to their health insurance, which is critical in the healthcare revenue cycle. This aligns closely with the function and intention of health insurers and employer plans, making it a foundational piece of legislation in health care.