US Federal Law

HIPAA Compliance

The Health Insurance Portability and Accountability Act establishes national standards to protect sensitive patient health information from being disclosed without consent.

$1.5M
Annual cap per tier
Up to $1.9M total
PHI
Protected data
18 identifiers
3
Core rules
Privacy, Security, Breach
1996
Enacted
Updated 2013 (HITECH)

Who Must Comply with HIPAA?

HIPAA applies to Covered Entities and their Business Associates who handle Protected Health Information (PHI).

Covered Entities

  • Healthcare providers (hospitals, clinics, doctors)
  • Health plans (insurers, HMOs, Medicare)
  • Healthcare clearinghouses
  • Pharmacies and laboratories

Business Associates

  • Cloud service providers hosting PHI
  • IT support and managed services
  • Billing and claims processing services
  • Software vendors (EHR, practice management)

Business Associate Agreements (BAAs): Any vendor that handles PHI on behalf of a Covered Entity must sign a BAA and comply with HIPAA requirements.

Core HIPAA Rules

HIPAA compliance is built on three fundamental rules

Privacy Rule

Establishes national standards for protecting individually identifiable health information. Defines patient rights and limits on use and disclosure of PHI.

Minimum necessary standardPatient access rightsAuthorization requirementsNotice of Privacy PracticesAccounting of disclosures

Security Rule

Requires administrative, physical, and technical safeguards to ensure confidentiality, integrity, and availability of electronic PHI (ePHI).

Risk assessmentAccess controlsAudit controlsEncryptionContingency planning

Breach Notification Rule

Requires covered entities and business associates to notify individuals, HHS, and sometimes media following a breach of unsecured PHI.

60-day notification to HHSIndividual notificationsMedia notification (500+ individuals)Annual smaller breach reportDocumentation of all breaches

HIPAA Penalty Tiers

Penalties are based on the level of culpability and knowledge of the violation.

Tier 1
Unknowing
Min: $100
Max: $50K
Annual: $25K
Tier 2
Reasonable Cause
Min: $1K
Max: $50K
Annual: $100K
Tier 3
Willful Neglect (Corrected)
Min: $10K
Max: $50K
Annual: $250K
Tier 4
Willful Neglect (Not Corrected)
Min: $50K
Max: $50K
Annual: $1.5M
Criminal penalties can include fines up to $250,000 and imprisonment up to 10 years.

How Dependra Helps with HIPAA

Manage Business Associate relationships and ensure PHI is protected across your vendor ecosystem.

  • Inventory all vendors with access to PHI
  • Track Business Associate Agreement status
  • Assess vendor HIPAA compliance posture
  • Monitor for HIPAA-related security incidents
  • Identify HIPAA-compliant alternatives
  • Generate vendor risk documentation for audits
Start HIPAA Assessment

Official Resources

HIPAA Quick Facts

Full Name
Health Insurance Portability and Accountability Act
Enacted
1996
Enhanced By
HITECH Act (2009)
Enforced By
HHS Office for Civil Rights
Scope
US Healthcare Industry

Ready for HIPAA Compliance?

Protect patient health information and meet regulatory requirements.