What is the maximum civil monetary penalty for a covered entity that fails to comply with the Privacy Rule?

The maximum civil monetary penalty for a covered entity that fails to comply with the Privacy Rule is $1,500,000. This figure is established by the Department of Health and Human Services as part of the Health Insurance Portability and Accountability Act (HIPAA) enforcement provisions. The penalties are tiered based on the level of culpability and the nature of the violation, with the maximum penalty reflecting the most severe infractions, particularly if they reveal a pattern of negligence or willful disregard for patient privacy. The purpose of these penalties is to enforce compliance with privacy regulations and ensure that covered entities take the necessary precautions to protect sensitive health information. Understanding these penalties is crucial for medical auditors and professionals in the healthcare field, as they underline the importance of adhering to HIPAA regulations to avoid significant financial repercussions.