P is for Penalties

Our HIPAA ABC is “P is for Penalties.”

The Department of Health and Human Services has published a notice on April 30th that it is exercising its discretion in how it applies its regulations on the assessment of Civil Monetary Penalties (CMPs) under HIPAA. Currently HHS applied the same cumulative annual limit to the four categories of violations.

Pending further rule making HHS will now apply different cumulative annual CMP limits instead of the maximum $1.5 million for each level of violation. This is a reduction in the maximum limit, scaling down based on the level of culpability. HHS will use the new penalty structure until further notice.

The Four Categories

Based on four categories of culpability:

For a category of no knowledge the minimum penalty is now $100, and the annual limit will be $25,000 down from $1.5 million.

For a reasonable cause $1,000 is the minimum and $100,000 for an annual limit down from $1.5 million.

For Willful neglect with a correction it would be $10,000 as a minimum and $250,000 for annual limit.

The highest is for Willful neglect with no correction with $50,000 as a minimum with an annual limit of $1,500,000.

To read this important Notice visit the Federal Register using the link below.