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Data Breach

cyber-5Data Breach Insurance Protection 

  • Protected Health Information
  • Penalties from $100-50,000 per violation
  • State Data Breach Laws
  • Data Breach Law Suits
  • Notification of Patients Expense
  • Credit Monitoring Expense
  • Regulatory Fines
  • Crises/Reputational Management Expense
  • Data Breach Extortion
  • Rogue Employees



Cyber criminals, hackers, rogue employees and just plain careless employees can open you or your facility up to significant costs imposed by these Federal and/or State Laws for the unauthorized release or theft of Protected Health Information.

Newly passed laws such as HITECH/HIPAA hold YOU – the health care provider responsible for release of this information even if no damage has occurred.  Encrypted data DOES NOT eliminate the risk. 

Federal and state laws can impose fines of up to $50,000 per record and mandate additional requirements for remediation which are costly and in addition to any fine and penalty.

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For further reading…………..

HHS Strengthens HIPAA Enforcement

The U.S. Department of Health and Human Services (HHS) issued an interim final rule with request for comments today to strengthen its enforcement of the rules promulgated under the Health Insurance Portability and Accountability Act (HIPAA).  The Health Information Technology for Economic and Clinical Health (HITECH) Act, which was enacted as part of the American Recovery and Reinvestment Act of 2009, modified the HHS Secretary’s authority to impose civil money penalties for violations occurring after Feb. 18, 2009.  These HITECH Act revisions significantly increase the penalty amounts the Secretary may impose for violations of the HIPAA rules and encourage prompt corrective action.

“The Department’s implementation of these HITECH Act enforcement provisions will strengthen the HIPAA protections and rights related to an individual’s health information,” said Georgina Verdugo, the director of HHS Office for Civil Rights (OCR). OCR is responsible for administering and enforcing HIPAA’s privacy, security and breach notification rules.

“This strengthened penalty scheme will encourage health care providers, health plans and other health care entities required to comply with HIPAA to ensure that their compliance programs are effectively designed to prevent, detect and quickly correct violations of the HIPAA rules,” said Verdugo.  “Such heightened vigilance will give consumers greater confidence in the privacy and security of their health information and in the industry’s use of health information technology.”

This interim final rule with request for comments is the first of several steps HHS is taking to implement the HITECH Act’s enforcement provisions.  The remaining provisions, which have yet to become effective, will be addressed in the next few months in forthcoming rulemakings.  Additional information about HIPAA and several related rulemakings may be found on OCR’s Web site:

Note: All HHS press releases, fact sheets and other press materials are available at


Last revised: September 12, 2010

  • 1]  United States Department of Health & Human Services.  Summary of the HIPAA Privacy Rule.  Washington, 2009.
  • [2]  Nancy L. Perkins, Health Information Security: Complying with Federal Breach Notification requirements as a Newly Regulated Entity, Bloomberg Law Reports: Health Law, January, 2010.
  • [3]  “Chronology of Data Breaches.”  26 April, 2010.
  • [4]  United States Department of Health & Human Services.  Summary of the HIPAA Privacy Rule.  Washington, 2009.
  • [5]  “2009 Data Breach Investigations Report”  2009.
  • [6]  Ponemon, Larry.  “Ponemon Study Shows the Cost of a Data Breach Continues to Increase.”  Ponemon Institute.  25, January, 2010.
  • [7]  “Chronology of Data Breaches.”  26 April, 2010.