Hipaa Violation Lawsuit Payout: What You Need to Know About Penalties and Fines

If you're involved in a HIPAA violation lawsuit, you're likely wondering what kind of payout you can expect. The penalties and fines for HIPAA violations can be substantial, with fines ranging from $100 to $50,000 per violation.

The Department of Health and Human Services (HHS) can impose fines of up to $1.5 million per year for repeated violations. In some cases, individuals may also face civil penalties.

The HHS has a tiered system for determining penalties, with the severity of the violation and the number of individuals affected playing a significant role.

A HIPAA violation occurs when a covered entity, such as a healthcare provider or insurance company, improperly discloses or mishandles protected health information (PHI).

This can happen in various ways, including electronic, oral, or written communication.

A HIPAA violation can result in significant fines and penalties, up to $1.5 million for a single violation.

A single HIPAA violation can also lead to a HIPAA lawsuit, which can be costly and time-consuming for the defendant.

HIPAA violation lawsuit payouts can be steep, and it's essential to understand the penalties and fines involved. A single HIPAA violation can cost a healthcare organization up to $1.5 million per year.

The OCR issues penalties for HIPAA violations, which range in severity based on the nature of the offense and the knowledge the offender had of the violation. Civil penalties are usually issued in cases where the offender was unaware they were committing a HIPAA violation.

The penalties for civil violations can range from a minimum $100 fine for an individual who was unaware they were violating HIPAA rules, to a minimum $50,000 fine for an individual who acted with willful neglect and failed to fix the issue afterward.

Criminal penalties are usually issued in cases where individuals knowingly obtain or use PHI without permission. These penalties can result in jail time and fines, with the most severe offense carrying a maximum of 10 years in jail and a $250,000 fine.

A large-scale HIPAA breach can result in fines of up to $6.85 million, as seen in the case of a health insurance provider that was fined for a data breach involving nearly 10.5 million individuals.

Here are some examples of HIPAA settlements and fines:

It's worth noting that large-scale settlements are only a fraction of the fines levied by federal investigators every year. Additionally, the name of your practice is permanently listed on The Wall of Shame for violating HIPAA, including the offense, date, and number of individuals affected.

HIPAA violations can have severe consequences, and it's essential to learn from the mistakes of others. One hospital system was fined $2.15 million for failing to detect the theft and sale of patient records.

The hospital system also failed to notify the OCR of lost patient records in a timely manner. This highlights the importance of maintaining systems to ensure PHI is only accessed by authorized employees for appropriate purposes.

A health insurance provider was fined $6.85 million for a data breach that remained undetected for 9 months. The hackers gained access to the provider's computer system with a phishing email that installed malware.

The provider failed to conduct a comprehensive and accurate risk analysis to identify threats to the confidentiality, integrity, and availability of ePHI. This led to the PHI of over 10 million individuals being compromised.

A city was fined over $200,000 for failing to protect HIPAA privacy. The city had not deactivated the former employee's login credentials at the time of their termination.

The city also failed to perform a risk assessment to identify potential risks and vulnerabilities to the confidentiality, integrity, and availability of ePHI. This led to the city paying a significant fine.

Here are some key takeaways from these examples:

In 2018, a Tennessee-based medical imaging services company was ordered to pay $3 million in penalties for violating multiple HIPAA rules, including failing to notify affected individuals within 60 days of a data breach discovery.

The company's server was accessible on the internet, allowing anyone to access and view the PHI of over 300,000 individuals.

The FBI discovered the breach, and the company was also ordered to adopt a corrective action plan.

A class action lawsuit against NuLife Med LLC resulted in the company agreeing to pay an undisclosed sum to resolve the data breach, which compromised PHI and PII of over 6,000 individuals.

In another case, Logan Health Medical Center was the victim of a cyberattack that involved patient data, affecting over 213,500 individuals.

The healthcare entity offered complimentary credit monitoring services and agreed to create a $4.3 million fund to cover claims.

Here are some notable HIPAA violation cases:

Advocate Care had a major HIPAA violation in 2018. The company's server was accessible on the internet, allowing anyone to view the PHI of over 300,000 individuals.

The company took 147 days to notify the affected individuals, which is a significant delay. Under HIPAA rules, organizations are required to notify affected individuals within 60 days of a data breach discovery.

Organizations are also responsible for ensuring their vendors, such as server hosts, uphold HIPAA compliance standards. This means that Advocate Care should have taken steps to ensure its server was properly secured.

As a result of the violation, Advocate Care was ordered to pay $3 million in penalties and adopt a corrective action plan. This plan is designed to help the company improve its HIPAA compliance and prevent future data breaches.

Columbia University Medical Center and NewYork-Presbyterian Hospital were hit with a $4.8 million penalty due to a data breach that exposed the health records of approximately 6,800 patients. This was a result of a physician attempting to deactivate a personally-owned computer server on the network.

The breach was not just a minor issue, but a serious violation of patient confidentiality. The hospitals were required to upgrade their systems and create appropriate policies and defenses for future cyberattacks.

The penalty was split between Columbia University Medical Center ($1.5 million) and NewYork-Presbyterian Hospital ($3.3 million). This serves as a reminder that HIPAA compliance is not just a recommendation, but a requirement.

Here's a breakdown of the penalty:

Logan Health Medical Center was the victim of a cyberattack in 2022, which exposed the PHI of over 213,500 individuals. The breach included sensitive information such as names, addresses, medical record numbers, and health insurance information.

The hackers were in the system for at least four days, and the breach was only discovered in November 2021. Logan Health offered complimentary credit monitoring services to affected individuals as a precaution against fraud.

The lawsuit filed against Logan Health alleged that the company failed to implement reasonable and appropriate cybersecurity measures. The plaintiffs believed that if there was enough security awareness training for the workforce, they could have avoided the whole breach.

The lawsuit alleged that the plaintiffs and class members suffered damages due to the exposed PHI and PII, including out-of-pocket costs, lost opportunity costs, and lost wages. The settlement created a $4.3 million fund to cover claims, with a maximum of $25,000 per individual for out-of-pocket expenses and up to $125 per class member for lost time.

Here are the types of information potentially compromised in the breach:

HIPAA violation lawsuits can result in hefty fines and payouts. A notable example is the Anthem, Inc. case, where 78.8 million individuals' PHI was stolen, resulting in a $48.2 million financial penalty.

In 2021, the second-highest number of HIPAA fines occurred, with penalty amounts totaling $5,982,150. This is a significant amount that highlights the importance of HIPAA compliance.

A health system was fined $2.4 million for disclosing a patient's PHI in a press release without authorization. This incident demonstrates the importance of protecting patients' rights to privacy.

The OCR fined a company $6.85 million for violating the HIPAA Security Rule after hackers gained access to their computer system through a phishing email. This highlights the importance of conducting thorough risk assessments and implementing sufficient security measures.

A medical imaging services company was ordered to pay $3 million in penalties and adopt a corrective action plan after their server was accessible on the internet. This incident emphasizes the need to notify affected individuals within 60 days of a data breach discovery.

The top ten biggest HIPAA violation penalties issued by OCR and state attorneys general since HIPAA was enacted are as follows:

These examples demonstrate the severity of HIPAA violations and the importance of compliance.

HIPAA violations can be costly, with fines reaching up to $1.5 million for a single incident. To avoid these penalties, it's essential to understand the common mistakes that can lead to HIPAA violations.

One common mistake is accessing patient health records without permission or authorization. This can be avoided by ensuring that patient records are only accessed for treatment, payment, or healthcare operations purposes.

Regular HIPAA risk assessments are also crucial to identify vulnerabilities in PHI. This can help prevent security risks and ensure that patient data is protected.

Another important aspect is providing patients with access to their medical records upon request and without delay. This is a fundamental right under HIPAA.

Business Associate Agreements are also a critical aspect of HIPAA compliance. Ensure that any third-party vendors with access to PHI also maintain HIPAA compliance to avoid potential violations.

To summarize, here are some common HIPAA violations to avoid:

By understanding these common mistakes and taking steps to prevent them, you can reduce the risk of HIPAA violations and protect patient data.