THE FINANCIAL IMPACT OF HIPAA VIOLATIONS & HOW TO COMPLY
Sources:http://www.hhs.gov/hipaa/for-professionals/covered-entities/index.html
http://www.hhs.gov/hipaa/for-individuals/faq/187/what-does-the-hipaa-privacy-rule-do/index.htmlhttp://www.ama-assn.org/ama/pub/physician-resources/solutions-managing-your-practice/coding-billing-insurance/hipaahealth-insurance-
portability-accountability-act/hipaa-violations-enforcement.pagehttps://kb.iu.edu/d/ayzf
http://blog.continuum.net/top-3-questions-msps-have-about-hipaahttps://www.hipaa.com/�ve-steps-to-hipaa-security-compliance/
©Arvig 2019
Any entity under the health care category:
Therapists Doctor’s Clinics Psychologists Dentists
Chiropractors Hospitals Nursing Homes Pharmacies HMOs
Health Insurance Companies
Government programs like Medicare and
Medicaid
Company Health Plans
Health Care Clearinghouses
The Health Insurance Portability and Accountability Act (HIPAA) was passed by Congress in 1996 and provides a complex set of rules and regulations for health care entities.
A major goal of HIPAA is to mandate industry-wide standards for health care information within electronic billing processes, to protect the privacy and security of
health information. It holds violators accountable, with both civil and criminal penalties.
WHO’S COVERED UNDER HIPAA?
WHAT IS HIPAA?
HIPAA VIOLATIONS & PENALTIES HIPAA enforcement follows a tiered penalty structure that considers both the nature and
extent of the violation. However, no matter your part in a HIPAA breach, whether your work laptop was stolen, or you neglected to update the security patches on your network,
it will cost you.
TIER
2 HIPAA violation due to reasonable cause and was not due to willful neglect.
PENALTY:
$1,000 - $50,000 per violation, up to an annual maximum of $1.5 million for repeat violations
TIER
3 HIPAA violation due to willful neglect, but violation was corrected within required time period.
PENALTY:
$10,000 - $50,000 per violation, up to an annual maximum of $1.5 million for repeat violations
TIER
4 HIPAA violation due to willful neglect and not corrected.
PENALTY:
$50,000 or more per violation, up to an annual maximum of
$1.5 million for repeat violations
CIVIL MONETARY PENALTIES
TIER
1 Entity or individual did not know (and by exercising reasonable diligence would not have known) the act was a HIPAA violation.
PENALTY:
$100 - $50,000 per violation, up to an annual maximum of $1.5 million for repeat violations
CRIMINAL PENALTIES
Unknowingly or with reasonable cause
Up to
1 YEAR in jail
Under false pretenses
Up to
5 YEARS in jail
For personal gain or malicious reasons
Up to
10 YEARS in jail
1 YEAR
5 YEARS
10 YEARS
4 STEPS TO HIPAA
COMPLIANCE
Run a complete risk assessment against HIPAA guidelines to expose gaps
Maintain high-quality
network security, anti-virus
protection and data backup solutions
Purchase equipment with
security compliance and
compatibility with existing systems
Regularly train your sta� on
security protocols to ensure data integrity and
security
STEP
04
STEP
01
STEP
02
STEP
03
Learn more.
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