Skip to content
  • About Us
    • Who We Serve
  • Solutions
    • HIPAA for Covered Entities
    • OSHA for Healthcare
    • HIPAA for Business Associates
    • SRA for Covered Entities
    • Abyde Incident Response Program
    • Abyde Reseller Program
  • Resources
  • News
  • Events
  • Partners
  • Contact Us
  • Login
    • HIPAA for Covered Entities
    • OSHA for Healthcare
    • HIPAA for Business Associates
    • SRA for Covered Entities
SIGN UP
BOOK A DEMO

Privacy Rule Proposed Modifications | Public Comments Released

July 8, 2021

Remember those Privacy Rule modifications that the Department of Health and Human Services (HHS) proposed late last year? Well, after adding a 45-day extension on the public comment period back in March, the responses submitted have finally been made available – giving us some additional insight on what we can expect to see when the updates are officially finalized.  

For anyone looking for a light-read while they drink their morning coffee – diving into the official HHS document might not be for you. The proposal included a lengthy list of changes centered around increasing permissible disclosures of protected health information (PHI) and enhancing care coordination and case management. As the healthcare industry has evolved, so have the necessary requirements for protecting data privacy and security – and these modifications address several issues that have become the source of widespread non-compliance over recent years. One of the major areas of focus should come as no surprise considering the initiative that was declared in 2019 to enhance enforcement for patient right of access violations – and the 19 different settlements that have resulted from it so far. So in looking at how the Privacy Rule changes plan to improve this issue, some of the major proposed provisions include:

  • Shortening covered entities required response time from its current 30-day requirement to 15 days.
  • Providing patients with more rights to view their PHI in person with the ability to take notes or pictures. 
  • Reducing the identity verification burden on patients exercising their access rights
  • Clarifying when electronic PHI (ePHI) must be provided to the patient at no cost. 

In addition to addressing patients’ right of access, the proposed modifications also clarify certain definitions and phrasing that oftentimes leads to confusion and misunderstanding by providers and patients. Some of these updates include:

  • Adding definitions for the terms electronic health record (EHR) and personal health application
  • Amending the definition of health care operations to clarify the scope of permitted uses and disclosures
  • Creating an exception to the “minimum necessary” standard 
  • Modifying the content requirements of the Notice of Privacy Practices (NPP) to better clarify patients’ rights with respect to their PHI
  • Expanding the ability of covered entities to disclose PHI in the interest of public health and safety in situations such as seen during COVID-19

While the examples provided are only a snapshot of the full list of proposed modifications, each update follows suit with the evolving environment in the healthcare industry and covers relevant concerns felt by both providers and patients. So much so, that the comment period extension was made due to such a “high degree of public interest” and amounted to a total of 1,391 comments submitted in response to the HHS’s proposal. 

So what can we expect? 

These proposed modifications take into consideration the public comments received on the OCR’s 2018 RFI that requested public input on how HIPAA rules could improve to better “support care coordination and case management and promote value-based care while preserving the privacy and security of PHI.” Each provision is a direct reflection of the key themes identified in the public opinion received back in 2018 and addresses issues like administrative burdens and the need for improving upon patient rights. So although we don’t have a time machine to jump ahead and see what exactly the final rule will entail, we can pretty confidently say that these concerns addressed in the HHS document will continue to be a focus in regulatory amendments and government enforcement. And the high volume of public interest clearly depicts the impact and value that enacting these changes will have on patients and providers.

When will you need to comply 

As far as knowing the what and when of the final ruling – we don’t quite have a definitive answer. But it’s important for all covered entities to be aware and prepared for the expectations of complying with the modified Privacy Rule provisions when they are made official. According to the HHS, “The effective date of a final rule would be 60 days after publication.” Additionally, entities will still have 180 days from that effective date to update or implement policies and procedures to achieve compliance with these new standards. 

So when it comes to the timeframe for when the government will actually start enforcing the new compliance standards, you have 240 days of breathing room once the final rule is published. BUT based on the HHS’s acknowledgment that the impact of adhering to these new guidelines will involve “covered entities actions to re-train their employees on, and adopt policies and procedures to implement, the legal requirements of this proposed rule” we highly recommend taking an ‘early bird gets the worm’ approach for compliance. Having a complete HIPAA program in place along with a full understanding of the potential changes that could be coming your way is the best way to ensure that your patients’ data is best protected and your practice is best prepared for avoiding a HIPAA violation and fine.

RECENT POSTS

  • Spencer Gifts HIPAA Fine
    Spencer Gifts HIPAA Settlement: Ransomware, Risk Analysis, and What Comes Next
  • OCR Ransomware Settlements
    OCR Ransomware Settlements: 4 Massive HIPAA Fines from April 2026 & How to Avoid Them
  • OSHA 2026 GHS Deadlines
    2026 OSHA HazCom Deadlines: How the GHS Update Impacts Your Practice
PrevPreviousAbyde and Smile Source partner to deliver leading HIPAA compliance solutions to private practice dental professionals
NextWhat the Proposed 2022 HHS Budget Says About the Future of HIPAA & CybersecurityNext

Related posts

Spencer Gifts HIPAA Fine
Abyde News, Fines, HIPAA

Spencer Gifts HIPAA Settlement: Ransomware, Risk Analysis, and What Comes Next

June 19, 2026 Penelope Schweitzer No comments yet

June 19, 2026   Quick Guide:  The Office for Civil Rights issued a major fine towards Spencer Gifts benefits plan. This fine reinforces that all HIPAA-regulated entities must have a thorough compliance program.    The Stats You Need to Know 76%: The percentage of large healthcare breaches now caused by hacking/IT incidents. $450,000: Financial settlement of this enforcement. 10,023: The number of individuals were impacted in this breach.  264%: The increase in ransomware-related breaches reported to the OCR since 2018.   When you think about Spencer’s, you likely picture the staple mall store with pop culture novelty gifts, not the latest HIPAA settlement enforcement headline.  Spencer Gifts LLC Flexible Benefits and Welfare Benefit Plans, or their employee benefits plan, reached a settlement with the Office for Civil Rights for $450,000 and a 2 year Corrective Action Plan (CAP).  This fine is a reminder that Covered Entities include all parties that create and utilize patient data, including health care plans. While they might not see patients traditionally, they still are responsible for keeping Protected Health Information (PHI) secure.    What Happened?   In response to employee complaints regarding access to their employee benefits portal, Spencer Gifts Health Plan discovered their systems were infiltrated with ransomware in November 2021. Malicious actors encrypted over 10,000 individuals’ PHI and demanded a ransom. The exposed data included names, phone numbers, social security numbers, and more, putting employees at risk.  The breach was reported in January 2022. After years of investigation, it was settled that the plan failed to meet basic HIPAA Security Rule requirements proactively.    The Compliance Gaps A common misconception is that an organization faces a financial penalty due to a breach. While the breach serves as the catalyst for the investigation, the OCR is looking to see if an organization has a thorough compliance program in place and made a genuine effort to protect patient data.  For instance, the health plan did not complete a Security Risk Analysis (SRA). This required assessment identifies all technical, administrative, and physical safeguards (and vulnerabilities) across your organization. By completing this document, your organization can address concerns before they become an issue. There’s no way to know where risks are unless they are properly reviewed.  Additionally, the plan did not have sufficient policies and procedures, nor trained staff adequately. Without sufficient policies and training, staff are left without the tools to recognize and respond to HIPAA threats before they escalate. As a result, Spencer Gifts now faces $450,000 in penalties and two years of government monitoring to ensure those missing requirements are finally implemented. And that figure doesn’t account for the years of investigation, legal fees, breach notification costs, and operational disruption that preceded the settlement.   The Biggest Takeaway This case isn’t only a lesson for retail organizations’ health plans, but it’s a warning for every HIPAA-regulated entity. The OCR can and will investigate any organization exposed for failing to meet HIPAA requirements, including small medical practices To be prepared before a cyberattack occurs, make sure your organization has: A completed and current Security Risk Analysis. A trained workforce that knows how to handle PHI Accessible policies and procedures staff can actually reference. An up-to-date compliance program.  Ready to strengthen your compliance program? Schedule a free educational consultation with our team today.

OCR Ransomware Settlements
Abyde News, Fines, HIPAA

OCR Ransomware Settlements: 4 Massive HIPAA Fines from April 2026 & How to Avoid Them

May 4, 2026 Penelope Schweitzer No comments yet

May 4, 2026   Quick Guide:  The Office for Civil Rights (OCR) just issued a massive wake-up call, announcing four simultaneous settlements totaling $1,165,000. The Stats You Need to Know 76%: The percentage of large healthcare breaches now caused by hacking/IT incidents. 427,000+: Total number of patients impacted across these four recent settlements. 264%: The increase in ransomware-related breaches reported to the OCR since 2018. The Office for Civil Rights (OCR) just announced a flurry of investigation settlements. At the root of the four that were announced: ransomware. Ransomware attacks continue to target healthcare facilities. As of last year, the OCR discovered that 76% of large breaches are due to hacking and IT shortcomings. Unfortunately, healthcare information is a goldmine for hackers, exposing sensitive data that can lead to identity theft, financial fraud, and compromised patient care. Breakdown & Lessons Learned Regional Women’s Health Group (Axia) The first settlement was regarding the Regional Women’s Health Group (Axia), an OBGYN network across five states. In this case, the organization submitted a breach report following a cyberattack that exposed over 37,000 patients. The settlement resulted in a $320,000 fine and a 2-year Corrective Action Plan (CAP). The Lesson: The OCR didn’t just fine them for being hacked; they reached a settlement because the healthcare organization failed to conduct a “thorough and accurate” Security Risk Analysis (SRA). If you don’t know where your vulnerabilities are, you can’t patch them. Unfortunately, hackers counted on this negligence and exploited it.  Assured Imaging This was the largest of the four fines, affecting a staggering 244,813 individuals. When a ransomware infection hit their servers, Assured Imaging, a medical imaging enterprise, reported a breach to the OCR. After a long investigation (the initial cyberattack occurred in 2020), and resulted in a $375,000 settlement and a 2-year CAP.  The Lesson: Beyond the initial ransomware attack, it was discovered that Assured had never completed an SRA. Additionally, the organization did not notify patients within 60 days of discovery of the breach. This is a direct violation of the Breach Notification Rule, which aims to allow patients to take control and mitigate risks as quickly as possible.  Consociate Health Consciate Health is the only Business Associate (BA) fine in the four. BAs continue to be under the OCR’s microscope, such as potentially needing to follow stricter requirements when handling patient data. Their breach started with a phishing attack that eventually led to the encryption of systems holding data for over 136,000 people. The BA discovered the ransomware six months after the initial phishing attack. Upon the OCR’s further investigation, the SRA was found to be insufficient. The organization paid a $225,000 settlement and entered into a 2-year CAP.  The Lesson: Human error (phishing) is the most common entry point for ransomware. Constant employee training is just as important as a strong firewall. Additionally, just because a BA doesn’t directly work with patients doesn’t mean it isn’t their responsibility to keep patient data secure.  SG Health Plan Even employee benefit plans are regulated under the Health Insurance Portability and Accountability Act (HIPAA). SG Health Plan, associated with a Connecticut energy provider, reported that the data of 9,316 members were exposed following a ransomware attack. It was discovered that the organization did not complete an extensive SRA. The benefit plan entered a settlement with the OCR for $245,000 and a 2-year CAP.  The Lesson: This settlement highlights that HIPAA applies to corporate health plans just as much as it does to traditional healthcare providers. Additionally, every organization that handles Protected Health Information (PHI) must complete an SRA.  The Bottom Line The OCR isn’t fining practices for ransomware attacks, but for being ill-prepared.  However, it is easier said than done to ensure your organization is secure in protecting patient data and complying with HIPAA.  Proactively implementing the HIPAA Security Rule is your opportunity to mitigate the impacts of a cyberattack. Waiting until the ransom note appears on your screen is a million-dollar mistake. Want to see what you might be missing?  Run a 5-Minute HIPAA Gap Assessment and protect your practice today! 

MMG Fusion HIPAA Settlement
Abyde News, Fines, HIPAA

15 Million Reasons to Review Your Business Associates: Lessons from the MMG Fusion Settlement

March 6, 2026 Penelope Schweitzer No comments yet

March 6, 2026 They say a mistake ignored is a disaster in the making. For one dental software provider, a 2020 breach became a 15-million-patient nightmare in 2026. MMG Fusion LLC, a dental marketing software business in Maryland, is in the crosshairs of the OCR and the subject of the latest HIPAA enforcement action. MMG agreed to a $10,000 settlement and a 3-year Corrective Action Plan (CAP).  The latest HIPAA settlement, and the 12th Enforcement Action in the Office for Civil Rights (OCR) Risk Analysis Initiative, highlighted the importance of completing a thorough Security Risk Analysis (SRA), proper Breach Notification, and choosing the right Business Associate (BA).  What Happened?  In December 2020, a malicious actor infiltrated MMG’s systems. Over 15 million patients’ Protected Health Information (PHI) was exposed in the cybercrime and leaked to the dark web.  Under the HIPAA Breach Notification Rule, a BA must notify affected Covered Entities (the dental practices) within 60 days of discovering a breach. However, the OCR didn’t learn about this 2020 incident until a complaint was filed in March 2023, more than two years later. The investigation uncovered a critical flaw: MMG Fusion lacked a compliant Security Risk Analysis (SRA). The SRA is a comprehensive review of an organization’s physical, technical, and administrative safeguards to protect PHI. A thorough SRA likely would have identified the very system vulnerabilities that the hackers exploited in 2020. Although the OCR factored in MMG’s “small business” status when determining the $10,000 fine, this amount does not account for the years the investigation took, the accumulated costs of legal counsel, stress, and reputational damage that occurred before the fine was made public. Additionally, MMG will also need to report to the OCR for 3 years in accordance with the CAP settlement.  Streamline Your Compliance This case highlights three non-negotiable pillars for every HIPAA-regulated entity: compliant HIPAA risk assessments, timely breach notification to the OCR and impacted parties, and choosing the right business partner to handle your sensitive information.  Managing vendors and staying on top of SRAs is overwhelming for a busy healthcare organization.  Modern software solutions automate the SRA process and generate compliant Business Associate Agreements (BAAs) for Covered Entities and BAs to use, ensuring both parties are held accountable.  Ready to learn more? Meet with an expert today!

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
Abyde Logo

1.800.594.0883 | info@abyde.com

Automated HIPAA and OSHA Compliance

Our Reviews

From Our Blog
  • Don’t Get Caught Off Guard: HIPAA Audits are Back!
  • Don’t Be a Statistic: Why OSHA Compliance Matters in Healthcare
  • What Money Doesn’t Cover: The True Price of HIPAA Non-Compliance
  • HIPAA: It’s Not Just a Training – Your Guide to Continuous Compliance
Solutions
  • HIPAA for Covered Entities
  • OSHA for Healthcare
  • HIPAA for Business Associates
  • SRA for Covered Entities
  • Abyde Incident Response Program
  • Abyde Reseller Program
Resources
  • News
  • Events
  • Partners
  • HIPAA Badges
  • OSHA Badges
  • Learning Center
  • Compliance FAQs
Company
  • About Us
  • Who We Serve
  • Pricing
  • Contact Us
  • Newsletter
  • Jobs
  • COPYRIGHT © 2026 ABYDE
  • |

  • TERMS & CONDITIONS
  • |

  • PRIVACY POLICY
  • |

  • SECURITY MEASURES
  • |

  • E-SIGNATURE TERMS