Help: FAQs, tutorials, videos, page index and more
Viewing:  Sep 21, 2019
Find-A-Code Focus Newsletter

HIPAA Violation Penalties Revised

By Wyn Staheli, Director of Research
May 06, 2019

On April 30, 2019 The Department of Health and Human Services (HHS) announced that “HHS will apply a different cumulative annual CMP limit for each of the four penalties tiers in the HITECH Act.” Unlike other notices which require a proposed rule with a comment period, this notice will take effect immediately because the law allows HHS to revise penalty amounts as they see fit.

To give the context to these changes, in 2013, there was a ruling which imposed a maximum annual Civil Monetary Penalty (CMP) or $1.5 million for each ‘tier’ of culpability. The following table outlines the previous and new penalties:

Type of Violation

Fine per Violation

Old Annual Limit per Violation

New Annual Limit per Violation

No Knowledge

$100 - $50,000

$1.5 Million

$25,000

Reasonable Cause

$1,000 - $50,000

$1.5 Million

$100,000

Willful Neglect - Corrected

$10,000 - $50,000

$1.5 Million

$250,000

Willful Neglect - Not Corrected

At Least $50,000

$1.5 Million

$1.5 Million

Keep in mind that this is a new annual limit. So if an investigation finds that this violation occurred over the course of two years, your maximum penalty could be as much as $3 million. The good news is that, if your organization did not know (and even with reasonable diligence would not have known) of the violation, your maximum penalty drops significantly.

Interestingly, HHS also stated that “HHS expects to engage in future rulemaking to revise the penalty tiers in the current regulation to better reflect the text of the HITECH Act.” There is no timeline of when to expect these proposed changes.

For those with a copy of the HIPAA Compliance 4th Edition, please update the penalty tables on pages 13 and 76 to reflect these changes.

References


share
 

More Articles in May 2019

 

Poll

We want to continue to add tips to our code information pages. What type of tips would be most beneficial for you to see?

News Articles by Month
September 2019- 1
August 2019- 3
July 2019- 3
May 2019- 2
April 2019- 3
March 2019- 9
February 2019- 3
January 2019- 5
November 2018- 3
September 2018- 1
August 2018- 4
June 2018- 5
May 2018- 4
April 2018- 1
March 2018- 1
February 2018- 8
January 2018- 6
2017 - View
2016 - View
2015 - View
2014 - View
2013 - View
2012 - View
2011 - View
2010 - View
2009 - View
2008 - View
Free 14 Day Trial
No Credit Card Required
Pricing
Starting at $10/month
Sign In
Welcome back!