Georgia Navigator Practice Exam

What is the maximum fine that can be imposed against a covered entity for all HIPAA violations in a calendar year?

1. $100,000

2. $1,000,000

3. $1,500,000

4. $2,000,000

The correct answer is: $1,500,000

The maximum fine that can be imposed against a covered entity for all HIPAA violations in a calendar year is indeed $1,500,000. This cap reflects the severity of HIPAA violations and aims to ensure that covered entities—such as healthcare providers, health plans, and health clearinghouses—are incentivized to maintain the privacy and security of protected health information (PHI). Under HIPAA, fines are structured in tiers based on the level of negligence and intent related to the violation. The maximum penalty of $1,500,000 per year is set for violations of the same provision that occurs with willful neglect but is corrected within a certain timeframe. This emphasizes the law's serious approach to protecting patient information and penalizing entities that fail to comply with these regulations. This context helps reinforce the importance of understanding not just the numbers involved, but also the legal framework surrounding them in relation to patient privacy rights and compliance obligations. Other options represent amounts that are not aligned with current regulatory limits established under HIPAA and would therefore not be applicable in this scenario.