What is the maximum penalty for noncompliance with HIPAA provisions?

The maximum penalty for noncompliance with HIPAA provisions is set at $1.5 million. This amount is applicable per violation per year, as established under the HITECH Act, which amended HIPAA to increase the penalties for breaches of health information privacy. The specific tiered structure of penalties considers factors such as the nature and purpose of the violation, the circumstances surrounding the violation, and the degree of culpability. This tiered approach allows for substantial penalties, particularly for willful neglect that is not corrected in a timely manner, thus emphasizing the importance of compliance within healthcare organizations. The significance of this penalty serves to enforce the requirement for covered entities and business associates to maintain robust privacy and security practices for protected health information. Other listed options do not accurately reflect the legal framework for penalties associated with HIPAA violations.