In today’s digital age, the exchange and storage of information has become very common in all sectors of the world, healthcare being no exception. But with this transmission and storage comes the dangers of security and unauthorized access. The Health Insurance Portability and Accountability Act (HIPAA) was enacted with stringent regulations to safeguard this data and its violations can be severe. However, despite this, violations continue to occur leading to severe consequences for healthcare organizations and individuals.
In this blog, we’ll delve into what HIPAA is, and the repercussions for its non-compliance and what you need to do to avoid them.
What is HIPAA Compliance?
Health Insurance Portability and Accountability Act or HIPAA compliance prevents a patient’s medical record from being disclosed by healthcare providers, health insurance companies, and other healthcare organizations to anyone other than a patient and the patient’s authorized representatives without their consent in the US. It was enacted in 1996.
All healthcare providers, health plans, and healthcare clearinghouses in the country must comply with HIPAA.
Fines for HIPAA non-compliance
The Department of Health and Human Services (HHS) Office for Civil Rights (OCR) enforces the HIPAA fines. Depending on the type and severity of HIPAA violation, its penalties are classified below:
Types of HIPAA violations:
Within the HIPAA compliance umbrella, four distinct levels structure all violations and their adjacent penalties.
| Level One | The organization is not aware of any data breach. This breach also could not have been avoided. |
|---|---|
| Level Two | The organization is aware of the breach, but unable to prevent it even with adequate systems and precautions. |
| Level Three | The organization deliberately ignored HIPAA compliance laws but attempted to correct it within 30 days. |
| Level Four | The organization deliberately ignored HIPAA compliance laws and did not correct it even after 30 days. |
Classification of HIPAA violation fines:
Depending on the severity of the violation, fines are classified into two types i.e. civil and criminal. Here’s the breakdown:
Civil HIPAA Fines:
These fines are levied on individuals who have committed a HIPAA violation without any malicious intent. The act was done by individuals or organizations who were either neglectful or unaware about their actions. Given below is the breakdown:
- $100 for unknowingly committing a HIPPA violation.
- $1,000 if the act was done in willful neglect.
- $10,000 per violation if the act was done in willful neglect but it was rectified in time.
- $50,000 per violation if the act was done in willful neglect but it was not fixed.
Criminal HIPPA Fines:
Here the individual or organization willfully commits a HIPAA violation for personal gain. The penalties incurred are more severe than the civil ones. Given below is the breakdown:
- $50,000 and jail for upto one year for willfully obtaining and disclosing a patient’s data.
- $100,000 and jail for upto five years for a violation under false pretense.
- $250,000 and jail for upto 10 years for using a patient’s medical information for personal gain or using it to harm the patient.
Conclusion:
HIPAA violation penalties are a reminder in protecting a patient’s privacy and data security. Beyond the financial and legal repercussions, they can erode the trust between the public and the healthcare organizations.
With the evolving digital landscape, it is a challenge for all healthcare organizations in the country to maintain compliance everytime. But with proper equipment, staff training on HIPAA compliance laws, documentation of all compliance efforts, and risk assessments to identify and address potential vulnerabilities can help mitigate the problems.
Let Us Help You
For nearly twenty years we have helped our clients navigate the complex world of healthcare data security by ensuring that they comply with the latest HIPAA standards in the form of Information Security Consultation, Compliance and Advisory Services.
With our vendor neutral approach, we offer comprehensive incident response services to meet every requirement for auditing, consulting, and technical assessments to ensure you get the best service and that you are on top of your game by avoiding penalties.
So, what are you waiting for? Let us come together for a easy and streamlined HIPPA compliance and get the trust of your clients today.
