HIPAA
Violation Fines For Businesses - What You Need to Know
HIPAA, Health Insurance Portability and Accountability
Act was enacted to offer protection to workers as well as their families
through new employer limitations to exclude health coverage for any preexisting
condition, providing new rights to those who end up losing coverage to access
group health plan and to ban discrimination that is based on preexisting
conditions of the employees. This act was put in place back in 1996 and also
protects patient medical information electronically stored or paper stored.
This is through the HIPAA Privacy Rule and
the Security Rule implemented by HHS.
The
ORC, Office of Civil Rights under HHS, Health Human Services investigates any
violations of the act through filed complaints. It is the HIPAA enforcement
agency and determines the penalties for every situation where a violation has
taken place. The penalties are based on the act of 2009 American Recovery and
Reinvestment Act. Most employers and employees do not clearly understand the
violation fines yet it is very important information especially for growing
businesses.
HIPAA
violation fines
The
civil penalty amount will usually be dependent on the harm extent resulting
from the act violation. It can also be calculated depending on whether the
violation willfully or unknowingly occurred and whether it was timely corrected
or not. In essence, any unknowing negligence needs to be corrected in as short
as 30 days from OCR notice. The most common HIPAA violation fines examples are:
- First time violation unknowingly committed – the fine for this kind of violation can be from $100 to around $50,000
- Willful negligence violation timely corrected – for this kind of violation, the resulting fine stands from $10,000 to $50,000 maximum
- Willful negligence violation not corrected – in case the willful negligence is not corrected within the given time limit of 30 days, the fine cannot be anything less than $50,000. It is the heftiest of all violation fines under the act.
Criminal
Violations
Covered
entities can end up suffering serious criminal consequences under the Privacy
Rule. The rule protects patient information of health from any disclosure. Any
deliberate disclosure can therefore amount to prosecution by the Department of
Justice. The fine for the violation is usually $50,000 coupled with 1 year in
jail. In case the private information is sold or transferred, the violation
could amount to 10 years in jail and $250,000.
If
you run a business, it is important to understand the HIPAA act and to comply
to avoid the personal and financial penalties that come with violations of the
set rules. Insurance adjusters, healthcare professionals as well as other
covered entities must be dedicated to ensuring that no circumstance leads to
compliance failure.
This
is because it could have drastic negative effects to a business financially as
also as far as credibility goes. It becomes easier for you as a business to
keep up with the given acts when you are fully aware of the consequences.
Complying can make a huge difference in business prowess and business
failure.
HIPAA Law cannot be taken for granted by any
small business. The simple set of rules ensures that you and your business are
on the right side of the law. This can save the business or company from lots
of avoidable losses.
Business
Attorney, Business Lawyer
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