HIPAA Violations: Penalties & Legal Consequences for Healthcare Providers

The Health Insurance Portability and Accountability Act (HIPAA) was enacted by Congress in 1996 as a means to protect the privacy and confidentiality of health care recipients. This federal ruling carries serious penalties, including financial and criminal consequences, for violations.

Identification

• Any type of health care provider, including individuals, organizations and third parties, is held to HIPAA standards. When a violation is identified, enforcement is necessary and the entity is susceptible to the punishment determined by lawmakers reviewing the case.

Function

• Punishment for a HIPAA violation varies depending on the severity of the violation, the type of violation, whether the offense was corrected in a timely manner and whether the offense was intended or accidental. According to the American Medical Association, a HIPAA violation is still punishable even if the responsible party was unaware of partaking in a violation.

Types

• Consequences for violating HIPAA laws include financial penalties, imprisonment and, in some instances, the revocation of a medical license; combinations of these penalties are also possible. The American Medical Association explains that a willful HIPAA violation without correction has the potential to cost an individual $250,000 and up to 10 years in prison.