HIPAA Insurance
HIPPA Insurance is a vital consideration all covered entities must make. The Health Insurance Portability & Accountability Act (HIPAA) brought about regulations issued by the U.S. Department of Health & Human Services (HHS) with the intent to protect patient privacy. HIPAA brought about new safeguards for the purpose of protecting the security and confidentiality of private patient health information. Regulations cover medical records and other individually identifiable health information that is documented on paper, documented electronically, or communicated verbally.
The introduction of HIPAA means that doctors, self-insured employers, hospitals, pharmacies, and a whole slew of other providers can be prosecuted for violating the privacy of medical records. Violators of the HIPAA regulations can face civil action against them, or can be subject to administrative action. With the HIPAA compliance mandates entities legally required to maintain compliance are now facing additional liability exposure. If you are a provider subject to HIPAA requirements, it’s absolutely essential to safeguard your business, practice, and assets with a comprehensive HIPAA Insurance Policy. Protecting against HIPAA claims is something that cannot be ignored.
The administrative penalties can be stiff, and the costs of litigation alone makes HIPAA Insurance worth the minimal premium carriers will typically charge. Monetary fines under HITECH Act can run anywhere from $100 per single violation to $1,500,000 as the maximum for a calendar year worth of violations. The fines are structured on a tier level. Each level is meant to punish violations based on an increasing level of capability by the offender; the penalty will be decided based on the nature and the extent of the violation and the nature and the extent of the harm resulting from the violation. If you are one of the entities( i.e. companies with a health care plan, health care clearinghouses, and healthcare providers to name a few) required to be HIPAA compliant you could be subject to civil (money penalties) enforced by the Department of Health and Human Services, and or criminal penalties, enforced by the U.S. Department of Justice. The high fines levied on HIPAA violators reflect the importance of safeguarding protected health information. Faced with the looming threat of steep fines from failing to meet HIPAA data breach requirements, the health service industry is seeking ways to make sure they are HIPAA compliant.
Sometimes the most cautious and prudent policies and procedures just won’t be enough to protect against an unwanted claim. A prescription faxed to the wrong patient, a front office employee leaving treatment records on her desk for someone to walk-by and see, or perhaps a failure to properly dispose of patient information that results in the identity theft of that patient. Any number of circumstances can leave providers vulnerable to liability exposure and hence the need to obtain HIPAA Insurance to safeguard against claims.
