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HHS Applies Inflation Increase to Penalties for HIPAA Violations – The HIPAA Journal
HHS Applies Inflation Increase to Penalties for HIPAA Violations
The HHS’ Office for Civil Rights has increased the penalties for HIPAA violations with immediate effect. As of January 28, 2026, the penalties have been increased in line with inflation, as mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Annual adjustments to the penalty amounts are necessary to maintain the deterrent effect of financial penalties.
When the HITECH Act was introduced, the penalties for HIPAA violations were set as follows:
- Tier 1: Minimum fine of $100 per violation up to $50,000
- Tier 2: Minimum fine of $1,000 per violation up to $50,000
- Tier 3: Minimum fine of $10,000 per violation up to $50,000
- Tier 4: Minimum fine of $50,000 per violation up to $1,500,000
The penalties were capped at $1,500,000 for violations of an identical provision in a calendar year, and all penalties are subject to annual increases in line with inflation. OCR, like all other Executive Departments and Agencies, is required to apply annual increases to its penalty amounts. Each year, the Office of Management and Budget (OMB) issues a Memorandum that includes a multiplier for the annual adjustment.
All Executive Departments and Agencies are required to apply the multiplier by the specified date, which for the 2025 increase was January 17 last year. The HHS is often late in applying the annual adjustment to its penalties. The previous adjustment to the penalty amounts was applied on August 8, 2024. While the 2025 adjustment was due to be applied by January 17, 2025, it was not applied until January 28, 2026, more than a year late. OMB has yet to announce the inflation multiplier for 2026.
The new penalty amounts are effective from the date of publication in the Federal Register. If the violation occurred before November 2, 2015, or a penalty was assessed before September 6, 2016, the pre-adjustment civil penalty amounts in effect before September 6, 2016, will apply.
2025 Penalties for HIPAA Violations
| Penalty Tier | Minimum Penalty | Maximum Penalty | Annual Penalty Cap |
| Did Not Know | $145 | $73,011 | $2,190,294 |
| Reasonable Cause | $1,461 | $73,011 | $2,190,294 |
| Willful Neglect (Corrected within 30 days) | $14,602 | $73,011 | $2,190,294 |
| Willful Neglect (Not corrected) | $73,011 | $2,190,294 | $2,190,294 |
While these are the official penalty amounts, OCR has not rescinded its 2019 Notice of Enforcement Discretion. In 2019, OCR reviewed the text of the HITECH Act and determined there had been a misinterpretation. OCR issued a Notice of Enforcement Discretion, lowering the maximum penalties and annual caps in three of the four penalty tiers. The effective penalties for HIPAA violations, per the Notice of Enforcement Discretion, are detailed in the table below. OCR can rescind the Notice of Enforcement Discretion at any point, but cannot change the penalties detailed in the table above without further rulemaking.
| Penalty Tier | Minimum Penalty | Maximum Penalty | Annual Penalty Cap |
| Did Not Know | $145 | $36,505.50 | $36,505.50 |
| Reasonable Cause | $1,461 | $73,011 | $146,053 |
| Willful Neglect (Corrected within 30 days) | $14,602 | $73,011 | $365,052 |
| Willful Neglect (Not corrected) | $73,011 | $2,190,294 | $2,190,294 |
Penalties for Violations of the Part 2 Regulations
Violations of the Part 2 regulations are now enforced by OCR, following the update to the Part 2 regulations to align them more closely with HIPAA. While violations are penalized with the same penalty structure as HIPAA, the penalties are not the same. OCR has taken the starting point to be the penalty amounts stipulated by the HITECH Act of 2009, rather than the current penalty amounts for HIPAA violations, which have increased annually in line with inflation since 2009. As such, violations of the Part 2 regulations are penalized less severely than violations of the HIPAA Rules, despite Part 2-covered data being considered more sensitive. Per the recent publication in the Federal Register, the penalties for violations of the Part 2 regulations are as follows.
| Penalty Tier | Minimum Penalty | Maximum Penalty | Annual Penalty Cap |
| Did Not Know | $103 | $51,299 | $1,538,970 |
| Reasonable Cause | $1,026 | $1,538,970 | $1,538,970 |
| Willful Neglect (Corrected within 30 days) | $10,260 | $1,538,970 | $1,538,970 |
| Willful Neglect (Not corrected) | $51,299 | $1,538,970 | $1,538,970 |
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HIPAA Training for IT Professionals – The HIPAA Journal
HIPAA Training for IT Professionals
HIPAA training for IT professionals is required for IT workforce members who support systems that create, receive, maintain, or transmit protected health information (PHI), because HIPAA compliance depends on administrative, physical, and technical safeguards being implemented and followed consistently.
Why HIPAA Training is Necessary for IT Professionals
IT professionals influence how PHI is protected more directly than most job functions because they design, configure, administer, and monitor the systems that store and move electronic protected health information (ePHI). Even when an IT role is not clinical, IT staff may access logs, databases, backups, ticketing systems, and troubleshooting data that contain PHI. HIPAA training helps IT teams understand the privacy and security expectations that apply to their work, the consequences of misconfiguration or improper access, and the operational behaviors that reduce the risk of unauthorized access, improper disclosure, or data loss.
HIPAA training for IT should connect the HIPAA Privacy Rule and the HIPAA Security Rule to real technology workflows. IT personnel need to understand how permitted uses and disclosures relate to system administration activities, how minimum necessary applies to troubleshooting and access, and how privacy obligations intersect with incident response, auditing, and vendor management. Training should also reinforce that compliance is supported by documented policies and procedures and that IT work must align with those requirements.
IT teams can encounter PHI in many forms beyond the electronic health record. Common exposure points include directory services, authentication logs, audit trails, access reports, help desk tickets, screenshots, email archives, voicemail systems, call recordings, mobile device management platforms, endpoint logs, application databases, and data exports used for reporting or integrations. Backups and disaster recovery replicas often contain complete PHI datasets, which makes secure access control and monitoring essential. IT professionals should be trained to recognize that even metadata and identifiers, when linked to care context, can constitute PHI.
Training should address how PHI can be unintentionally copied into insecure places. Examples include attaching screenshots with PHI to tickets without proper controls, using unapproved file-sharing tools to transfer logs, storing database extracts on local drives, or leaving PHI in temporary folders after troubleshooting. Training should reinforce approved methods for handling sensitive information during support and maintenance work.
Core IT Security Systems for Protecting PHI
A comprehensive HIPAA training program for IT professionals should reinforce the practical application of HIPAA requirements to technology operations, including the following areas.
Access controls and identity management
IT staff should understand the importance of unique user identification, strong authentication, least privilege, and timely access termination. Training should reinforce standardized provisioning and deprovisioning workflows, periodic access reviews, and the importance of aligning access with documented authorization and job duties. IT professionals should also understand how privileged accounts are controlled, monitored, and audited, and why shared credentials increase compliance and security risk.
Audit controls, monitoring, and logging
IT professionals should be trained on how audit logs support compliance, investigations, and breach analysis. Training should reinforce secure log retention, integrity controls, and monitoring processes that detect abnormal access patterns. IT teams should understand that log access itself can expose PHI, and access to logs should be controlled, justified, and documented according to policy.
Transmission and encryption practices
Training should cover secure transmission methods, including the approved use of encryption and secure portals when PHI is sent externally or transmitted between systems. IT staff should understand the organization’s standards for encryption at rest and in transit, key management practices, and how configuration choices can unintentionally downgrade security. Training should also address common risk areas such as email security, secure messaging platforms, VPN and remote access controls, and the secure configuration of APIs and interfaces that connect clinical systems.
Device and endpoint security
IT professionals should be trained on device management controls that protect ePHI across workstations, laptops, mobile devices, and shared clinical terminals. Training should reinforce patch management, endpoint protection, hardening standards, secure configuration baselines, and the handling of removable media. IT teams should understand how kiosk and shared device workflows are secured and how lockout and timeout policies reduce exposure.
Data lifecycle management
Training should address how PHI is managed across creation, storage, use, sharing, archival, and disposal. IT staff should understand retention requirements, secure deletion practices, and how to prevent PHI from being stored in unapproved locations. Backup and disaster recovery should be covered, including access controls for backup repositories, secure restoration workflows, and segregation of duties.
Incident response and breach support
IT professionals should understand the organization’s incident response process, their responsibilities during security events, and the importance of timely escalation. Training should reinforce how to preserve evidence, avoid altering logs, and coordinate with privacy and compliance teams. IT staff should be trained to recognize indicators of compromise and to report suspected incidents immediately, including phishing, credential theft, ransomware, misdirected data transfers, and misconfigurations that expose systems.
HIPAA Training for IT Professionals Working in HIPAA Covered Entities
When IT professionals work within a HIPAA Covered Entity, training should align with the Covered Entity’s policies and procedures and the operational realities of supporting clinical and administrative systems. Covered Entity IT staff should understand how HIPAA training applies to all workforce members, including management, and how their work supports organizational safeguards and compliance documentation. Training should reinforce internal processes for access authorization, change management, security risk management activities, and system maintenance. It should also address internal expectations for handling PHI during support, including how to minimize the amount of PHI used for troubleshooting and how to document access when required by policy.
Covered Entity training should also reinforce appropriate communication practices with users and departments. IT staff may receive requests for screenshots, data extracts, or configuration changes that affect PHI access. Training should emphasize that IT teams should follow approved workflows, verify requester identity and authority, and escalate uncertain requests rather than bypassing controls for convenience. IT professionals should also understand the organization’s process for privacy complaints and how IT evidence supports investigations.
HIPAA Training for IT Professionals Working in HIPAA Business Associates
When IT professionals work for a HIPAA Business Associate, training should address the additional expectations that apply to Business Associate employees and the scope limitations of working with PHI on behalf of Covered Entities. Business Associate IT staff should understand that access to PHI is permitted only to support contracted services and that information should not be used or disclosed outside that scope. Training should reinforce how minimum necessary applies to maintenance, monitoring, and support activities and why Business Associate staff must follow contractual requirements for security controls, incident reporting, and cooperation during investigations.
Business Associate training should emphasize incident reporting obligations and escalation pathways, including the requirement to report suspected incidents promptly according to internal policy and contractual terms. It should also cover how subcontractors are managed when they may handle PHI, including the need to ensure appropriate agreements and security controls are in place. Business Associate IT teams should understand that multi-tenant environments, shared infrastructure, and customer segmentation controls must be configured and monitored carefully to prevent cross-customer exposure of PHI.
Effective HIPAA Training for IT Professionals
An effective HIPAA Training program should be practical, measurable, and aligned with organizational policies and technical operations. Training should be delivered within a reasonable period after hire and reinforced when responsibilities change or when systems and policies are updated. Refresher training should be provided regularly, and annual training is commonly used as an industry best practice. Organizations should document completion, retain training materials, and maintain evidence of any knowledge checks or assessments. Training effectiveness improves when it is paired with ongoing security awareness activities, such as brief updates about new phishing campaigns, reminders about secure ticket handling, and reviews of recent incidents and lessons learned.
HIPAA training for IT professionals supports HIPAA compliance by ensuring IT staff understand how to protect PHI and ePHI through secure access controls, monitoring, encryption, endpoint security, and disciplined incident response. Training should account for whether IT professionals work within a HIPAA Covered Entity or a HIPAA Business Associate and should include cybersecurity training focused on medical records and modern attack methods. Online training supports consistent delivery, flexible completion, and documented completion records, which helps IT teams and compliance programs maintain strong privacy and security practices over time.
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