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HIPAA penalties are tiered by culpability, from no knowledge through wilful neglect that was never corrected, with both a per-violation amount and an annual cap per identical provision. The caps are what dominate large breaches: thousands of affected records collapse to the annual maximum, so the tier and the number of years the violation persisted matter far more than the record count.
HIPAA penalty structure
exposure = per-violation amount x violations, capped at the annual maximum for the tier, then multiplied by years of violation
Wilful neglect corrected within 30 days sits in tier 3, with an annual cap roughly six times lower than tier 4. Prompt remediation is the single largest lever on the penalty.
No. They are adjusted annually for inflation, so the figures here are indicative. Settlements also frequently land well below the statutory maximum alongside a corrective action plan.