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Summary of 2018 HIPAA Fines and Settlements

This post summarizes the 2018 HIPAA fines and settlements that have resulted from the enforcement activities of the Department of Health and Human Services’ Office for Civil Rights (OCR) and state attorneys general.

Another Year of Heavy OCR HIPAA Enforcement

In 2016, there was a significant increase in HIPAA files and settlements compared to the previous year. In 2016, one civil monetary penalty was issued by OCR and 12 settlements were agreed with HIPAA covered entities and their business associates. In 2015, OCR only issued 6 financial penalties. The high level of HIPAA enforcement continued in 2017 with 9 settlements agreed and one civil monetary penalty issued.

While there were two settlements agreed in February 2018 to resolve HIPAA violations, there were no further settlements or penalties until June. By the end of the summer it was looking like OCR had eased up on healthcare organizations that failed to comply with HIPAA Rules.

However, in September, a trio of settlements were agreed with hospitals that had allowed a film crew to record footage of patients without first gaining consent. Further settlements were agreed in October, November, and December and OCR finished the year on one civil monetary penalty and 10 settlements to resolve HIPAA violations.

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HIPAA Fines and Settlements

While 2018 was not a record-breaking year in terms of the number of financial penalties for HIPAA violations, it was a record-breaker in terms of the total penalty amounts paid. OCR received $28,683,400 in financial penalties in 2018. The mean financial penalty was $2,607,582.

HIPAA Fines and Settlement Amounts by Year

2018 saw the largest ever HIPAA settlement agreed with OCR. In October 2018, Anthem Inc., settled its HIPAA violation case with OCR for $16,000,000. The massive fine was due to the extent of HIPAA violations discovered by OCR and the scale of its 2015 data breach, which saw the protected health information of around 78,800,000 plan members stolen by hackers.

2018 HIPAA Fines and Settlements

Year Covered Entity Amount Settlement/CMP Reason
February 2018 Fresenius Medical Care North America $3,500,000 Settlement Risk analysis failures, impermissible disclosure of ePHI; Lack of policies covering electronic devices; Lack of encryption; Insufficient security policies; Insufficient physical safeguards
February 2018 Filefax, Inc. $100,000 Settlement Impermissible disclosure of PHI
June 2018 University of Texas MD Anderson Cancer Center $4,348,000 Civil Monetary Penalty Impermissible disclosure of ePHI; No Encryption
September 2018 Massachusetts General Hospital $515,000 Settlement Filming patients without consent
September 2018 Brigham and Women’s Hospital $384,000 Settlement Filming patients without consent
September 2018 Boston Medical Center $100,000 Settlement Filming patients without consent
October 2018 Anthem Inc $16,000,000 Settlement Risk Analysis failures; Insufficient reviews of system activity; Failure related to response to a detected breach; Insufficient technical controls to prevent unauthorized ePHI access
November 2018 Allergy Associates of Hartford $125,000 Settlement PHI disclosure to reporter; No sanctions against employee
December 2018 Advanced Care Hospitalists $500,000 Settlement Impermissible PHI Disclosure; No BAA; Insufficient security measures; No HIPAA compliance efforts prior to April 1, 2014
December 2018 Pagosa Springs Medical Center $111,400 Settlement Failure to terminate employee access; No BAA
December 2018 Cottage Health $3,000,000 Settlement Risk analysis failure; Risk management failure; No BAA

average HIPAA penalties by year

median HIPAA penalty by year

State Attorneys General HIPAA Enforcement Activities

It is difficult to obtain meaningful statistics on HIPAA fines and settlements by state attorneys general. While state attorneys general can issue fines for violations of HIPAA Rules, in many cases, financial penalties instead issued for violations of state laws. That said, 2018 did see a major increase in HIPAA enforcement activity by state attorneys general.

There were 12 HIPAA-related financial penalties issued in 2018 by state attorneys general. The New Jersey attorney general was the most active HIPAA enforcer behind OCR with 4 HIPAA fines, followed by New York with 3, Massachusetts with 2, and 1 financial penalty issued by each of Connecticut, District of Columbia, and Washington.

The largest attorney general HIPAA fine of 2018 – Aetna’s $1,150,000 penalty – was issued by New York. Aetna was also fined a total of $640,171 in a multi-state action by Connecticut, New Jersey, Washington, and the District of Columbia. Washington has yet to agree to a settlement amount with Aetna.

EmblemHealth was fined a total of $675,000 for a 2016 data breach: $575,000 by New York and $100,000 by New Jersey.

State Covered Entity Amount State Residents Affected
Massachusetts McLean Hospital $75,000 1,500
New Jersey EmblemHealth $100,000 6,443
New Jersey Best Transcription Medical $200,000 1,650
Washington Aetna TBA* 13,160 (multi-state total)
Connecticut Aetna $99,959 13,160 (multi-state total)
New Jersey Aetna $365,211.59 13,160 (multi-state total)
District of Columbia Aetna $175,000 13,160 (multi-state total)
Massachusetts UMass Memorial Medical Group / UMass Memorial Medical Center $230,000 15,000
New York Arc of Erie County $200,000 3,751
New Jersey Virtua Medical Group $417,816 1,654
New York EmblemHealth $575,000 81,122
New York Aetna $1,150,000 13,160 (multi-state total)

*Washington yet to determine settlement amount

Author: Steve Alder is the editor-in-chief of HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered on HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has several years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics.