According to the video presentation there are two types of penalties: Civil monetary penalties where one pays cash or writes cheques and criminal penalties where one pay money and also lose your freedom. Karn and Brown (2016) cites that there are four categories of civil monetary penalties: if one is not aware of a violation it usually cost between $100 and $50000 per occurrence. Failure to access the risk assessment is a violation and cost $130 per occurrence. For example, if one did not carry out a risk assessment in a year, they are required to pay $130 multiplied by 365 days. The range of penalty depends on the nature of the harm, individual’s reputation, physical harm, and natural harm. Secondly, if an entity causes violation due to reasonable cause, where one should know or have known that an activity has caused a breach attracts a fine between $1000 to $50000. Thirdly, “a violation caused by willful neglect” attracts a fine of between $10000 to $50000 per occurrence. For example, if one attends a webinar about HIPPA should be able to avoid this violation since they have legal information on compliance. Lastly, “violation due to willful neglect that is not corrected” attracts a penalty of $50,000 per occurrence. Each violation category attracts a maximum of $1.5 million penalty per calendar year. This is where one knows they know about a violation but they do not want to correct it. For criminal penalties, if an individual obtains and discloses PHI yields knowingly, they pay a penalty of $ 50000 and one year in jail (Karn and Brown, 2016). Also, if an individual conducts an activity of PHI under false pretense it attracts a criminal penalty of $ 100000 and five years in jail. When an individual intends to sell PHI for monetary gain or harm it, they attract a penalty of $250000 and 10 years in jail and this is the worst crime according to HIPPA (Karn and Brown, 2016)
Hello Michael, after watching the video I also noticed that security breach for an organization can lead to significant revenue loss. However, from your analysis after watching the it shows that security breach for organizations is common. As you also said penalty and a jail term for violating HIPPA rules knowingly are applied. That leads to the risk of the organization. Organizational information should always remain confidential to avoid putting the organization at risk.
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Hello Alicia. I concur with you that, penalties for PHI breaches are different based on the intention or the consciousness when violating the rules. Some people may not know about violation while others have the conscience and know what can befall them if the organization learns about their mistake. Penalties are different in such cases. Also, information of an organization may leak from one person knowingly or unknowingly through scammer or one being duped.
References
Karn Tommy and Brown Dan (2016). Penalties for a Security Breach: 2016 HIPAA Webinar 4. Retrieved from: https://www.youtube.com/watch?v=aeyIFq4enzQ
