In 1996, the United States Congress enacted the HIPAA, which stands for the Health Insurance Portability and Accountability Act. Sponsored by Senator Nancy Kassebaum (R-Kan) and Senator Edward Kennedy (D-Mass), this law primarily serves as a solid protection to the health insurance coverage of workers as well as their families, specifically once they lose or change their jobs. Furthermore, it standardized the national identifiers for employers and health insurance plans as well as the various transactions involving electronic health care. More importantly, this law protects the medical records of patients by keeping them secure and private. Aside from these highly significant facts, it is also important to learn the key aspects of this law, particularly the different HIPAA violations.
Different Types of HIPAA Violations
It is very important to be aware of the different terms of the HIPAA because failure to comply with any of these can lead to criminal and civil penalties. The consequences of such actions vary depending on the type of violation committed. HIPAA violations are classified into four main types. The first one is due to willful neglect, which is at the same time not corrected. The second type is due to willful neglect, but is corrected appropriately within the period required by law. The third type is not due to willful neglect, but due to reasonable cause. The fourth type is due to ignorance, in which the individual unknowingly violated any of the terms of the HIPAA.
Minimum Penalties for HIPAA Violations
The minimum penalties for the different types of HIPAA violations vary. For instance, if an individual willfully neglected a law and there is no appropriate correction received within the period stated by the law, the minimum is $50,000 for every violation made. For this kind of offense, the yearly maximum of $1.5 million is implemented. If an individual willfully neglected the law but appropriately corrected within the required period, the minimum penalty is $10,000 for every violation, with the annual maximum for repeat violations set at $250,000.
If there is reasonable cause for a violation instead of willful neglect, the maximum penalty for every violation is $1,000, with the annual maximum for repeat violations set at $100,000. If the violation resulted from ignorance, the minimum penalty is only $100 for each violation. The annual maximum for repeat violations is $25,000. Regardless of violation type, the State Attorneys General can impose any amount as maximum.
Maximum Penalties for HIPAA Violations
The maximum penalty for the first type of HIPAA violations is $50,000 for ever violation, the annual maximum of which is set at $1.5 million. These maximum penalties are also in effect for the second type, the third type as well as the fourth type of HIPAA violations.
More Points on HIPAA Violations
The HIPAA, which stands for the Health Insurance Portability and Accountability Act, was approved by the United States Congress to protect the health insurance coverage of workers as well as their families. More importantly, it also protects the medical records of patients by keeping them secure and private. In order to understand this law better, it is very important to know the different types of HIPAA violations as well as their corresponding minimum and maximum penalties.