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April 25, 2014

25 April 2014

OCR Levies Nearly $2 Million in HIPAA Fines for Stolen Unencrypted Laptops

On Tuesday, April 22, 2014, the U.S. Department of Health and Human Services Office for Civil Rights (“OCR”) announced that Concentra Health Services Inc. (“CHS”) and QCA Health Plan Inc. (“QCA”) have agreed to pay a total of $1,975,220, collectively, to resolve potential violations of the Health Insurance Portability and Accountability Act (“HIPAA”) Privacy and Security Rules stemming from the theft of unencrypted laptops. Specifically, CHS has agreed to pay $1,725,220, and QCA has agreed to pay $250,000, to OCR to settle potential HIPAA violations and will adopt corrective action plans to evidence their remediation of the potential violations. The clear message from both settlements is that OCR expects covered entities to encrypt mobile devices that store electronic Protected Health Information (“ePHI”).

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