Penalties

The Administrative Simplification provisions outlined in Section 1104 of HIPAA and subsequent legislation require that all HIPAA-covered entities that conduct electronic health care transactions comply with the standards adopted by the Secretary. The standardization of health care information exchange achieves greater uniformity in data transmission and decreases administrative burden.

Specific statutes regarding the penalties for noncompliance of covered entities can be found in the Code Federal Regulation 45 CFR 160.400 through 45 CFR 160.426 and 42 U.S. Code Part C - Administrative Simplification, §1320d–5.