The HITECH Act's Subtitle D Section 13410 is called "Improved Enforcement." It puts significant teeth into HIPAA enforcement, and has the potential to dramatically change the HIPAA regulatory landscape.
13410(a): In general, non-compliance due to “willful neglect” mandates a penalty and an investigation by HHS.
13410(b): Effective date is 24 months post enactment (February 18, 2011).
13410(c): In general, proceeds from certain civil fines shall be transferred to HHS/OCR to be used for enforcement and individuals may participate in the distribution of these proceeds.
13410(d): for violations due to “willful neglect” the fine is $50,000 per violation with an annual maximum of $1.5 million—other types of violations are less onerous.
13410(e): a state attorney general now has the statutory right to bring (under certain circumstances) a civil action on behalf of his/her residents if they have “reason to believe that an interest of one or more of the residents of that State has been or is threatened or adversely affected by any person who violates a provision of this part…” reasonable attorneys fees may be awarded to the State.
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