Healthcare Compliance Practice Test 2026 – Complete Exam Prep

The penalty for a breach of protected health information, particularly for a covered entity that did not know about the violation, falls within the range of $100 to $50,000. This tier of penalties is established by the Health Insurance Portability and Accountability Act (HIPAA), which dictates that the fines for violations vary based on the level of knowledge the covered entity had regarding the breach.

When it is determined that the covered entity was not aware of the violation, it falls into a less egregious category, hence the lower range of penalties. This serves as an incentive for covered entities to implement proper safeguards and training regarding the handling of protected health information, while also recognizing that certain unintentional breaches may not warrant the highest financial penalties. Higher penalty tiers apply when there’s willful neglect or a lack of reasonable cause, which is not the case here.