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Proposed HIPAA Enforcement Rule

The Department of Health and Human Services (HHS) published a Notice of Proposed Rulemaking (NPRM) in the April 18, 2005 Federal Register. The proposal outlines procedures for imposing civil money penalties (CMPs) on covered entities that violate rules established under the Administrative Simplification provisions of HIPAA.

This rule would amend existing rules relating to the investigation of noncompliance, applying them to all provisions under Administrative Simplification. The proposed rule provides that covered entities in violation of the Administrative Simplification provisions shall be subject to a penalty of up to $100 per violation, not to exceed a total of $25,000 per identical violations per calendar year. The proposed rule would also clarify and elaborate on the investigative process, the bases for liability, the determination of the penalty amount, grounds for waiver, conduct of the hearing, and the appeal process.

To read the NPRM, "HIPAA Administrative Simplification; Enforcement," visit http://www.access.gpo.gov/su_docs/fedreg/a050418c.html and scroll to "Health and Human Services Department." Comments in response to the proposed rule are due by June 17, 2005.
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