Why Using A HIPAA Compliant Password Manager Is Important
The Health Insurance Portability and Accountability Act (HIPAA) is a series of regulatory standards that outline the lawful use and disclosure of protected health information (PHI). Companies that deal with PHI are obliged to have physical, network, and procedural safeguards in place to ensure HIPAA compliance.
One of the tools that helps with HIPAA compliance is a password manager. But not all password managers are created equal. Today, let’s look at why it is important for organizations that must comply with HIPAA regulations to use a HIPAA compliant password manager.
Why your organization should use a HIPAA compliant password manager?
There’s a very simple answer to the question. Covered Entities (any organizations providing treatment, payment, and operations in healthcare) and business associates (anyone who has access to patient information and provides support in treatment, payment, or operations), which must follow the HIPAA regulations will have an easier time complying with all the HIPAA requirements if they choose a password manager which is already HIPAA compliant.
For companies that handle PHI, a HIPAA compliant password manager such as NordPass allows to securely store and access all the HIPAA-related data as well as improves the overall security posture and increase staff productivity. Additionally, a HIPAA compliant password manager helps organizations and businesses alike to meet password requirements outlined in the act.
What is a HIPAA violation?
In short, a HIPAA violation is any breach in an organization’s compliance program that compromises the integrity of PHI or ePHI. However, not all data breaches are HIPAA violations. A data breach becomes a HIPAA violation when the breach is caused due to an ineffective, incomplete, or outdated HIPAA compliance program.
Under HIPAA regulations, there are specific procedures that an affected institution must follow in the event of a data breach. The HIPAA Breach Notification Rule differentiates between two different kinds of data breaches – a major data breach affecting more than 500 users and a minor breach affecting less than 500 users – and outlines how covered entities and business associates must respond in such a disastrous event.
HIPAA fines range between $100-$50,000 per incident depending on the level of negligence. If it is detected that the organization has neglected to perform a “good faith effort” toward HIPAA compliance, fines can skyrise. With over $40 million payed in fines since 2016, HIPAA compliance is an essential part of any organizations that deal with PHI.
When it comes to data breaches, the 2021 Data Breach Investigations Report by Verizon notes that 81% of all company data breaches are caused by poor passwords. This is where a HIPAA compliant password manager comes especially handy. Just by deploying a business password manager such as NordPass in your organization you will significantly lower the risk of exposing your passwords to bad actors.
If you are looking for a HIPAA compliant password manager to secure your organization’s data, do not hesitate to contact our representative and schedule a demo call to see if NordPass is the right fit for you.