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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