Increasing Privacy Liability

Billing companies, customer service contractors and other businesses regularly handle private health records, but currently, they are not liable for information breaches. U.S. companies that partner with hospitals and other health providers could face steep fines if they disclose private patient information under a new federal rule proposed on July 8. The proposed rule would treat these companies the same as doctors, hospitals and insurance companies that already face penalties for disclosing private information, such as a patient's medical or payment history. The maximum civil penalties are $50,000 per violation, and $1.5 million a year.
Source: Insurance Journal
COPYRIGHT © 2010 KCAL INSURANCE