HHS' Office for Civil Rights fined Cignet Health $4.3 million for blocking patients' access to their medical records and for failing to cooperate in the investigation.
The first-ever fines imposed under the privacy rule of the Health Insurance Portability and Accountability Act, according to an HHS statement, stemmed from previous administrative conclusions that the Maryland insurer improperly denied 41 patients access to their medical records requested between September 2008 and October 2009.
“Covered entities and business associates must uphold their responsibility to provide patients with access to their medical records, and adhere closely to all of HIPAA's requirements,” said Georgina Verdugo, director of the Office for Civil Rights, in a news release. “The U.S. Department of Health and Human Services will continue to investigate and take action against those organizations that knowingly disregard their obligations under these rules.”
The federal law requires healthcare companies to provide patients with copies of their medical records within 60 days of their request.
The largest proportion of the fine—$3 million—stemmed from Cignet's refusal to respond to the demands of federal investigators for records. A federal judge had ruled against Cignet in the case in March 2010.
