September 2, 2024
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HIPAA violation consequences could be grave if you don’t follow them. With the growth of cyber intervention in the healthcare sector, the cases of data breaches have increased. From 2019 to 2020, almost 34.9 million people have encountered breaches of personal data. That’s exactly why HIPAA regulations were introduced.
The main aim of HIPAA is to protect employee relations with healthcare coverage. There are various rules governing HIPAA policies, and failure to meet those laws results in a HIPAA violation. Some violations include disclosure of Protected Health Information (PHI) and failure to conduct a risk evaluation. When these situations arise, the overall operation of the healthcare industry gets disrupted.
In this blog, we will focus on answering the question: What are the consequences of violating HIPAA? The main aim is to understand the different violations that happen. Furthermore, you will be able to understand the situations that give rise to such violations and their penalties.
HIPAA training is one of the most crucial elements in the healthcare industry. It ensures compliance with HIPAA and secures the security and privacy of patients. HIPAA training includes educating employees, staff members, and other medical professionals on the various regulations, practices, and guidelines of HIPAA.
Through HIPAA training, individuals gain a comprehensive understanding of their responsibilities, which includes:
The training program increases awareness of the importance of security in the healthcare industry.
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Generally, HIPAA violations happen when any organization goes against the standards mentioned by the 1996 US Federal Legislation.
HIPAA breaches can be categorized into different types. A few of them are:
Read more: Who Must Comply with HIPAA Rules and Regulations?
The question of what happens if HIPAA is violated can be answered by looking at the consequences of HIPAA violations. Encountering a HIPAA violation generally damages an organization’s reputation and hampers its overall image.
HIPAA violations deal a significant blow to the company’s reputation. Just imagine notifying patients that their data has been leaked; this easily breaks their trust in that organization. Such unprofessional behavior would drive them to choose another healthcare provider that offers more safety.
Apart from this, there are legal penalties for HIPAA violations, which can include:
Penalties are determined based on the number of people impacted, the specific type of violation, and whether the public was informed about the violation. Depending on the severity of the breach, fines range from 100 to 60,000 US dollars per violation.
There have been cases where organizations have paid millions in fines due to their failure to secure patient data. These economic penalties are very difficult for businesses to handle, as they significantly impact the financial stability and goodwill of the companies involved.
One of the biggest examples of the consequences of HIPAA violations is the case of Premera Blue Cross. In 2020, the OCR found that hackers gained access to the data of nearly 10.4 million individuals.
The hackers disrupted the computer systems with a phishing email that installed malware. This particular malware gave access to the ePHI, which went undetected for almost 9 months. OCR’s investigation found “systemic noncompliance” with the rules of HIPAA.
According to the OCR, the company failed to conduct an effective risk analysis to detect threats to the security and disclosure of the ePHIs. They also failed to protect the data from vulnerabilities and prevent unauthorized access.
When it was found that the company had failed to secure the data, it agreed to pay 6.85 million US dollars to the OCR at the US Department of HHS (Health and Human Services) and develop a corrective action plan to address all the violations.
Individuals found involved in HIPAA Violations can face criminal and civil penalties. Depending on the magnitude of the violation, charges can be formulated against them. Therefore, organizations should be very careful in handling all the essential data of the patients. A forfeiture of those would put the reputation and image in jeopardy.
In cases of noncompliance where the company fails to resolve the matter, OCR imposes civil money penalties (CMPs). The civil penalty structure determines the CMP and the HHS secretary sets the penalty amount based on the magnitude of the violation. If violations are corrected within 30 days, the secretary is prohibited from imposing civil penalties. Some of the tentative amounts imposed for various issues are:
Criminal violations are handled by the DOJ (Department of Justice). Penalties may involve the submission of money, time behind bars, or both.
“A single data breach can cost an organization millions, not just in fines, but in lost reputation and trust.” In the healthcare industry, HIPAA violations can have severe consequences. Some preventive measures organizations can undertake to avoid HIPAA violations are:
Read more: Complete HIPAA Compliance: IT Checklist, Security Rules & More
Our discussion demonstrates that HIPAA violations can have severe consequences. Whether intentional or unintentional, they could harm an organization’s image. Therefore, they should be avoided at all costs.
The saying, “Prevention is better than cure,” holds in these situations, as the consequences of violations can be very costly. The repercussions can include substantial penalties and even imprisonment.
Additionally, the accused organization’s goodwill and reputation can be severely damaged, which can affect its long-term business plans.