What must be included in a notice of privacy practices by health insurance providers?

The correct answer focuses on the necessity for health insurance providers to inform patients about how their personal health information is utilized and shared. This aspect is essential because it aligns with privacy regulations such as the Health Insurance Portability and Accountability Act (HIPAA), which mandates that providers maintain transparency about their information handling practices.

By including this information in the notice of privacy practices, patients become aware of their rights regarding their health information. It also outlines the circumstances under which their information may be disclosed, whether for treatment, payment, or healthcare operations. This transparency fosters trust between the provider and the patient, ensuring that individuals understand the measures in place to protect their privacy.

The other choices do not pertain to the core focus of a notice of privacy practices. While details of the provider's qualifications, insurance plans offered, and suggestions for selecting the right health plan may be important in their respective contexts, they do not meet the specific requirement of informing patients about their privacy rights and information security measures.