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HIPAA Violation Civil Penalties Increased

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1 minute read

The U.S. Department of Health and Human Services (HHS) published a final rule regarding penalties for HIPAA Privacy and Security Rules. It will apply to penalties assessed on or after October 6, 2023. All civil penalty amounts have increased.

 

Penalties

The penalties are arranged into four tiers and depending upon violation type. Penalty amounts range from $137-$68,928. The annual penalty cap is $2,067,813.

The most frequently reported HIPAA compliance problems, resulting in penalties, include:

  • Lack of safeguards on personal health information (PHI)
  • Impermissible uses or disclosures of PHI
  • Lack of patient access to PHI
  • Lack of administrative safeguards for electronic PHI
  • Use or disclosure of more than the minimum necessary PHI

 

HIPAA Enforcement

If a HIPAA violation has occurred, the HHS’ Office for Civil Rights (OCR) may issue a resolution agreement instead of a penalty. A resolution agreement requires the employer to take corrective action and pay a settlement amount which is much lower than a penalty amount. If no action is taken, then the OCR may decide to impose civil penalties.

To ensure compliance, employers with group health plans should periodically review their Privacy and Security Rules. Download the bulletin for more details.

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Erin Woulfe

Erin Woulfe

Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization, or providing tips and how-to’s to help them make their job easier.”