Which security feature is required during transmission of protected health information and medical claims to third-party payers?

• A. Password protection
• B. Encryption
• C. Firewall
• D. Digital signatures

Answer: (B)

Encryption is the security feature required when sending protected health information and medical claims over electronic networks to third-party payers. The HIPAA Security Rule requires a mechanism to encrypt PHI in transit, so anything intercepted remains unreadable and confidential. This directly protects the data as it moves across networks, which is the primary risk in transmission.

Password protection guards access to a file or system but doesn’t protect the data itself if it’s intercepted during transmission. A firewall helps defend the network boundary but doesn’t encrypt the data being sent. Digital signatures verify who sent data and ensure it hasn’t been altered, but they don’t conceal the content. Encryption directly safeguards the content of PHI in transit, making it the appropriate choice.