What is HIPAA?
The Health Insurance Portability and Accountability Act is legislation that was passed by Congress in 1996 to streamline the processing of personal healthcare information. The legislative goal is to make the
healthcare system less costly and more secure.

What does HIPAA Require?
Every organization that maintains or transmits personal health information - from hospitals, nursing homes
and doctors’ groups to payors, vendors and information providers - must take specific steps to comply with
regulations in the areas of privacy, technology security and transaction coding.

Why is HIPAA Important?
The deadline for Privacy compliance was April 14, 2003, except for small health plans, which have until April 14, 2004. The final deadline for Transactions and Code Set compliance was October 16, 2003. The deadline for Security compliance is April 21, 2005, except for small health plans, which have until April 21, 2006. The deadlines require compliance with the HIPAA regulations, which are detailed, precise, extensive and time-consuming.

Is there a Penalty for Missing the Deadline?
The government may impose penalties of up to $25,000 per individual for each violation and calendar year that
they are not in compliance. In addition, the government can exclude an entity or individual from federal healthcare programs. Criminal penalties for willful violation could result in fines of up to $250,000 and 10 years in prison. Most importantly, your organization may experience the economic delays of not being in compliance.

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