The U.S. Department of Health and Human Services (HHS) recently published its annual adjustments to civil monetary penalties (CMPs) for HIPAA violations.
On October 6, 2023, the HHS published its annual inflation adjustments for penalties related to violations of HIPAA. These adjustments, which became effective immediately, are based on the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The purpose of these adjustments is to ensure that CMPs remain an effective deterrent against non-compliance with HIPAA regulations.
See also: HIPAA Compliant Email: The Definitive Guide
Official Penalty Amounts for 2023 are as follows:
See also: What are the penalties for HIPAA violations?
An element considered in the updated Civil Monetary Penalties amounts is the cost-of-living multiplier, set at 1.07745 for 2023 based on the Consumer Price Index for all Urban Consumers (CPI-U).
This multiplier serves as the basis for recalculating the penalties annually.
Federal agencies, including HHS, are required to implement these adjustments promptly to reflect the updated penalty amounts.
However, it's necessary to note that OCR issued a Notice of Enforcement Discretion in April 2019, which reduced the maximum penalty amounts for certain tiers of HIPAA violations.
This reduction was prompted by a reevaluation of the language in the HITECH Act. Consequently, OCR continues to enforce these reduced penalty amounts, which include lower maximum penalties and annual caps for Tiers 1-3 of HIPAA violations.
See also: What are the penalties for HIPAA violations?
These annual adjustments to civil monetary penalties for HIPAA violations help ensure that organizations and individuals take data privacy and security seriously. Keeping penalties up-to-date with inflation encourages compliance and safeguards sensitive health information.
The impact of OCR's Enforcement Discretion adds complexity, making it vital for those subject to HIPAA to understand the nuanced penalty requirements to avoid potential consequences.