HIPAA The Health Insurance Portability and Accountability Act (HIPAA) of 1996[1] was enacted to:
- Improve portability and continuity of health insurance coverage in the group and individual markets
- To combat waste, fraud, and abuse in health insurance and health care delivery
- To promote the use of medical savings accounts
- To improve access to long-term care services and coverage
- To simplify the administration of health insurance
- And for other purposes
HIPAA Penalties HIPAA penalties can be severe. Not only monetarily, but also possible lawsuits and negative publicity. Noncompliance can result in the following:
- Fines of up to $25,000 per year
- Criminal penalties from $10,000 to $250,000, prison sentences from 1 to 10 years, or both