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What is the penalty for a HIPAA violation? HIPAA violations are expensive. The penalties for noncompliance are based on the level of negligence and can range from $100 to $50,000 per violation (or per record), with a maximum penalty of $1.5 million per year for violations of an identical provision. Violations can also carry criminal charges that can result in jail time.
HIPAA, the Health Insurance Portability and Accountability Act, was enacted by the U.S. Congress in 1996, and became effective July 1, 1997.This act is a grouping of regulations that work to combat waste, fraud, and abuse in health care delivery and health insurance.re-existing conditions may not be imposed if group coverage was effective for 12 months and not longer than 63 days elapsed between coverage. If such coverage was for less than 12 months, than pre-existing conditions may be imposed for only that portion of the 12 months that were not covered.