Which act prohibits a payer from notifying the provider about payment or rejection of unassigned claims?

The Federal Privacy Act of 1974 is designed to protect individuals' privacy by regulating how federal agencies handle personal information. One of the key components of this act is its requirement that personal information, including health information related to claims, be kept confidential and not disclosed without the consent of the individual. This aspect is particularly relevant when it comes to unassigned claims, where the patient has not assigned their benefits directly to the healthcare provider.

In the context of billing and claims, this means that a payer cannot share details about the payment or rejection of an unassigned claim with the provider because it would violate the patient's privacy. The act ensures that sensitive health information is disclosed only in accordance with the patient's wishes, reinforcing the confidentiality of medical records and claim details.

The other options, while important in their own rights, focus on different aspects of healthcare and insurance. The Tax Relief and Health Care Act of 2006 addresses payment reform and improvements in healthcare services, but does not specifically govern notifications of claims. The Improper Payments Information Act of 2002 deals with reducing improper payments made by the federal government but does not relate specifically to payer-provider communication. The Federal Claims Collection Act primarily pertains to the collection of debts owed to the federal government rather than privacy