HIPAA Violations - Who's Watching?

David Mittleman
Attorney
(866) 735-1102 Ext 430
Posted by David MittlemanSeptember 11, 2008 11:07 AM

The passing of the Health Insurance Portability and Accountability Act (HIPAA) of 1996, has since sparked great interest among Americans as to who may be looking at their private medical records. Over the last decade identity theft has spiked, stoking fear and paranoia about the Information Age. The Privacy Rights Clearing House reports that over "244 million data records of U.S. have been exposed due to security breaches since January of 2005."

One of the most egregious and shocking examples of security breaches occurred in May of 2006. U.S. veterans’ records were stolen by and employee at the Department of Veterans Affairs. The employee had taken home a laptop which contained the names, social security numbers, birth dates and diagnostic codes for 6.5 million veterans. Fortunately, in this instance, the laptop was recovered before any of the data had been removed and sold on the black market.

Another highly-publicized incident involved Michigan's Governor, Jennifer Granholm. Several employees were disciplined for attempting to access her medical file following an abdominal surgery performed at a Lansing-area hospital.

Between 2003 and 2007, more than 25,536 HIPAA complaints have been filed with the Department of Health and Human Services. While enforcement of these violations have generally been educational and remedial in nature, that trend is likely to change. Public outcry has call for a more aggressive approach in regulating HIPAA violations.

However, people are now starting to take matters into their own hand through civil causes of action. HIPAA is now being invoked as a basis for privacy standards, because HIPAA provides a floor level of protection.

In Sorensen, et al v. Barbuto, et al, 143 P. 3rd, 295 (Utah ct. App. 2006) and Acosta v. Byrum, 638 S.E.2d 246 (N.C. Ct. App. 2006), the plaintiffs were successful in using HIPAA’s floor level of protection to prove that there is a duty not to disclose confidential personal information. This will likely lead to a boom in using HIPAA in private tort litigation as the standard of care in maintaining health care privacy.

1 Comment

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Lane Hatcher
Posted by Lane Hatcher
September 12, 2008 3:08 PM

Sir,

The reason why HHS did not fine or otherwise extract a resolution agreement from Veterans Affairs over the loss of the laptop (though one wonders whether the FBI was able to ransom its retrieval or otherwise get it back without much trouble), is because HHS does not have the authority to fine or otherwise levy any actions against the Dod. The only federal administrative agency that may fine or extract $$$ from another federal administrative agency is the EPA.

As long as HHS continues its "let's be supportive of the covered entities" and keeps its head in the sand -- the Providence $100K resultion amount not withstanding -- covered entities will continue to act in bad faith, and consumers will continue to suffer.

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