Acct 554 Week 2 Health Care Paper

Improved Essays
1. What law is being violated by the employees at this health services organization?
Both the privacy and security rules of the Health Insurance Portability and Accountability Act are being violated.

2. Why was this law enacted?
HIPAA was enacted to establish regulations and criteria on how patient information should be used and how data should be protected and stored. This document also gives patients the right to say how they want their information used, and who the information can be released to. Written consent must be obtained from the patient in order to disseminate any information. Criteria should be developed on who has access to what information, and appropriate technical safeguards should be put into place, so information is only
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The maximum under unknowingly violating HIPAA is $50,000 per violation and the offender could be fined as high as $1.5 million annually. This depends on the severity of the violation, meaning what type of information was released and to whom, as well as how the breach occurred. In reasonable cause, the fine minimum is $1,000 per violation and could go as high as $100,000 for repeat offenders. The maximum penalty under reasonable cause is $50,000 to $1.5 million. The next category is willful neglect, where you knowingly violated HIPAA, but took corrective measures within the allotted time frame. Minimum penalties are $10,000 per violation with repeat offenders getting $25,000 annually. The maximum penalty is $50,000 with again a $1.5 million maximum for repeat offenders. The final category involves willful neglect, knowingly committing the act, and not completing corrections within the allowed time frame. The minimum and maximum for this is $50,000 per violation with repeat offenders getting as much as $1.5 million per

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