HHS imposes 7 Figure Fine for Breach of HIPAA; Soon to be the Norm?

In case you missed the OCR announcement late yesterday afternoon, the Department of Health and Human Services announced that it was imposing a civil money penalty of $4.3 million dollars against Cignet Health for various violations of HIPAA.   These penalties were based upon the violation categories and increased penalty amounts authorized by the HITECH Act; discussed further here.  The violations stemmed in part from Cignet's failure to provide 41 patients access to their own medical records as required under 45 C.F.R. § 164.524.   In addition to the huge amount of the fine, according the HHS, this action marks the first civil money penalty issued by HHS for HIPAA Privacy Rule violations.  This action could indicate a renewed push by HHS to enforce violations of HIPAA and utilize its heightened penalty schedule and enhanced enforcement powers provided under the HITECH Act.  Could this be the new norm for HIPAA enforcement?  Only time will tell.

HHS Withdrawing Breach Notification Final Rule - Temporarily

The Department of Health and Human Services (HHS) announced yesterday that it was temporarily withdrawing the breach notification final rule from review of the Office of Management and Budget (OMB) to allow HHS further time to consider these regulations.  The breach notification rule, among other things, requires covered entities to notify individuals whose protected health information (as defined by HIPAA) has been compromised or breached. HHS's explanation for the withdrawal was that breach notification was "a complex issue and the Administration is committed to ensuring that individuals’ health information is secured to the extent possible to avoid unauthorized uses and disclosures, and that individuals are appropriately notified when incidents do occur."  HHS stated that it intends to publish a final rule in the coming months.

 

HHS Requests Information on TPO Accounting of Disclosures

The Office of Civil Rights for the Department of Health and Human Services (HHS) recently requested comments related to its upcoming rulemaking under the Health Information Technology for Economic and Clinical Health (HITECH) Act, part of the American Recovery and Reinvestment Act of 2009. HITECH expands the current HIPAA Privacy Rule requirement that a covered entity provide individuals with a right to receive an accounting of certain disclosures of the individual's protected health information to certain parties. Currently, under HIPAA, a covered entity is not obligated to provide an accounting of disclosures if such disclosures were in furtherance of treatment, payment, or health care operations (TPO).  HITECH eliminated these exemptions by requiring covered entities to account for TPO disclosures if such disclosures are made through an electronic health record.

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