HIPAA, the Health Insurance Portability and Accountability Act of 1996 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.