The consequences of violating HIPAA
The consequences of HIPAA violations are severe, as they can result in criminal penalties, including fines and imprisonment. The potential consequences for violating HIPAA depend on the type of violation that was committed. In severe cases, violating HIPAA can even bankrupt medical practices and other types of healthcare companies. This is especially true for small and medium sized medical businesses. Any violation of HIPAA may result in hefty fines per incident (along with possible imprisonment) and/or criminal penalties. In general, a fine will be assessed for an individual or organization when they willfully violate the HIPAA rules. Additionally, the penalties can include criminal penalties including imprisonment for individuals in management.Violations can be categorized into four tiers:
- Tier 1, Culpability level: reasonable efforts.
- The minimum penalty for this type of violation is $127, and the maximum penalty for a single tier 1 violation is $63,973. The annual fine limit for tier 1 HIPAA violations is $1,919,173.
- Tier 2, Culpability level: lack of oversight.
- The minimum penalty for this type of violation is $1,280, and the maximum penalty for a single tier 2 violation is $63,973. The annual fine limit for tier 2 HIPAA violations is $1,919,173.
- Tier 3, Culpability level: neglect – rectified within 30 days.
- The minimum penalty for this type of violation is $12,794, and the maximum penalty for a single tier 3 violation is $63,973. The annual fine limit for tier 3 HIPAA violations is $1,919,173.
- Tier 4, Culpability level: neglect – not rectified within 30 days.
- The minimum penalty for this type of violation is $63,973, and the maximum penalty for a single tier 4 violation and annual fine limit for this type of violations is $1,919,173.