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This graded project is a research paper that you’ll complete


and submit to the school for grading. In your paper, you’ll


apply what you learned about HIPAA to an actual situation in


which a health care organization violated HIPAA regulations.




Health care organizations must know and follow the regulations


that are set forth by HIPAA, or be held accountable


for their failure to follow the rules. For this assignment,


you’ll need to find three real-life examples of HIPAA violations;


that is, violations of HIPAA’s privacy or security laws


that occurred in the United States since the passage of the


HIPAA law (after 1996). Each violation described should be


serious, and one that resulted in a fine or penalty for the


individual or company involved.


You can find real-life examples of HIPAA violations in


news reports, medical journals, professional health care


publications, and other similar reliable factual sources.


For each example violation, you should provide the following




n A complete, descriptive summary of the case


n Important facts that relate to the case, such as the


names of the company or individual involved, the date


of the violation, and the city and state where the incident




n An explanation of the HIPAA rules that were violated


Be sure to answer these questions when writing your




n How did the HIPAA violation occur?


n What policies (if any) did the organization have in place


to protect against the violation?


n What was the penalty for the violation (fine, prison term,


termination of employment, etc)?




Finally, describe three ways in which the organization could


have prevented the violation.


Organize your three case examples into a 750-word paper.


Research Instructions


To write your paper, you may use journal articles, textbook


material, case studies, and Web site information. The Web


site information must come from reputable and verifiable


sources, such as the United States Department of Health and


Human Services, the American Medical Association, professional


or business organizations, or articles published by


major news organizations.


To get started on finding a real-life case example that you’re


interested in, you can use an Internet search engine such as


Google. Try entering keywords such as “HIPAA violation”


under the “News” section. Or, go to your local library and


perform a search in the medical journals or professional


publications they have on file.


Writing Guidelines


1. Type your submission, double-spaced, in a standard


print font, size 12. Use a standard document format with


1-inch margins. (Do not use any fancy or cursive fonts.)


2. Read the assignment carefully, and follow the instructions.


3. Be sure to include the following information at the top of


your paper:


n Your name


n Your student number


n The course title (HIPAA Compliance)


n Graded project number (46081100)


n The date


4. Be specific. Limit your submission to the issues covered


by your chosen topic.




The student must


n Provide a clear discussion of the chosen topic


n Address the topic in complete sentences


n Support his or her research by citing specific information


from the textbook, Web sites, and any other references,


and by using correct APA or MLA guidelines for citations


and references


n Stay focused on the chosen topic


n Write in his or her own words and use quotation marks


to indicate direct quotations


Written Communication


The student must


n Discuss the topic in complete paragraphs that include an


introductory sentence, at least four sentences of explanation,


and a concluding sentence


n Use correct grammar, spelling, punctuation, and sentence






Provide clear organization (for example, uses words like






first, however, on the other hand, and so on, consequently,








since, next, and when)




n Make sure the paper contains no typographical errors


















The paper should be double-spaced and typed in font size 12.




It must include the student’s






n Name and complete mailing address




n Student number




n Course title (HIPAA Compliance)




n Research project number (46081100)






Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page


break, so be sure that you have seen the entire question and all the answers before choosing an answer.


1. Which of the following is used to code and classify morbidity data from patient medical records,


physician offices, and surveys conducted by the National Center for Health Statistics?






C. Claim status codes




2. You are employed by a small dentist office that has three employees. Under the Administrative


Simplification Compliance Act, your office is


A. required to file claims electronically.


B. excluded from the mandate to file a claim electronically.


C. required to append a waiver form and file all claims electronically.


D. required to file claims through paper submissions only.


3. Which of the following is the HIPAA standard code set for diseases, injuries, and other health-related


medical problems?




B. National Drug Codes


C. CDT-4




4. Dr. Madison’s office calls an insurance company to determine whether they have paid for Mr. Rossi’s


last checkup visit. This procedure is known as a


A. referral authorization.


B. health care claim status inquiry.


C. functional acknowledgment.


D. remittance advice.


5. The agency of the federal government that combats fraud and abuse in health insurance and health care


delivery is the


A. Centers for Medicare and Medicaid Services (CMS).


B. Health Care Fraud and Abuse Program.


C. Department of Justice (DOJ).


D. Office of the Inspector General (OIG)


6. Which of the following is the HIPAA standard code set for dental services?


A. National Drug Codes


B. CDT-4




D. Current Procedural Terminology


7. Which of the following advises covered entities about HIPAA compliance problems uncovered by the




A. corporate integrity agreement.


B. OIG Work Plan.


C. Health Care Fraud and Abuse Control Program.


D. OIG Fraud Alert


8. The department of the federal government that investigates criminal violations of the HIPAA privacy


standards is the


A. Department of Justice (DOJ).


B. Health Care Fraud and Abuse Program.


C. Centers for Medicare and Medicaid Services (CMS).


D. Office of the Inspector General (OIG).


9. A written document created by a health care provider that’s designed to prevent fraud and abuse by


outlining the process for finding, correcting, and preventing illegal practices among their staff members is


called a(n)


A. compliance plan.


B. code of conduct.


C. audit report.


D. OIG Work Plan.


10. Which of the following are physicians, contractors, or employees who have been found guilty of fraud,


and are therefore prevented from participating in Medicare, Medicaid, and federal health care programs?


A. Excluded parties


B. Advisors


C. Relators


D. Self-referrers


11. On a HIPAA 277 transaction, a claim status code of “A” indicates that


A. the claim has been finalized.


B. an error occurred in the transmission of the claim.


C. a request for more information has been sent.


D. the claim has been received.


12. Under the HIPAA transaction standards, the supplemental health information that’s provided to clarify


and support a health care claim is called a


A. paper claim.


B. implementation guide.


C. claim attachment.


D. remittance advice remark.


13. There are eight mandated transactions described under the HIPAA transaction standards. The 270/271


transaction represents


A. an inquiry to an insurance company to determine is a claim has been paid.


B. remittance advice that explains how a payment amount was calculated.


C. a delivery of information to an insurance company to apply payment to an individual’s account.


D. an inquiry to an insurance company to check whether a patient is covered for a specific service.


14. Under HIPAA, the nonmedical code sets that are used to capture general information, such as state


abbreviations and payment explanations, are called


A. implementation guides.


B. administrative code sets.


C. ICD-9-CM codes.


D. CPT codes.


15. Which of the following statements about electronic medical claims is correct?


A. Dentists are required to submit all claims electronically.


B. Medicare pays electronic claims in half the time required to pay paper claims.


C. No covered entity is required to use electronic claims; they may continue to send paper claims indefinitely.


D. Electronic claims are more expensive to send than paper claims.


16. The annual list of the OIG’s planned projects for sampling billing in various settings (such as hospitals,


doctor’s offices, and long-term care facilities) to check for potential fraud is called the


A. OIG Work Plan.


B. Deficit Reduction Act.


C. corporate integrity agreement.


D. triggered review.


17. Which of the following is the second part of an 835 that explains how the payment was arrived at?


A. Functional acknowledgment


B. Remittance advice


C. Claim payment status


D. Claim status inquiry


18. The Jefferson Pediatric group sends an 837 to the Rhode Island Insurance Company. An 837 is a type


of HIPAA transaction that represents a


A. referral certification and authorization.


End of exam


B. health care payment and remittance advice.


C. health plan enrollment.


D. health care claim.


19. A physician’s office “upcoded” office visits to an insurance provider in order to receive a higher


reimbursement for patient services. Upcoding is an example of


A. abuse.


B. benchmarking.


C. compliance.


D. fraud.


20. The federal law that prohibits physicians from making self-interested referrals, or referrals in which


they have a financial interest or may receive a kickback, is called


A. Deficit Reduction Act (DRA).


B. Sarbanes-Oxley Act.


C. Stark II.


D. False Claims Act (FCA).




Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page


break, so be sure that you have seen the entire question and all the answers before choosing an answer.


1. Under the HIPAA Security Standards, according to the category of _______ standards, covered entities


are required to create policies and procedures that concern authentication, transmission, and other issues


when electronic protected health information is accessed.


A. emergency


B. technical


C. administrative


D. physical


2. In a situation where a patient’s protected health information is required as evidence in a court of law, the


provider may release the information


A. only with the patient’s approval.


B. upon the request of any attorney.


C. only if the patient signs a release form.


D. without the patient’s approval upon receipt of a judicial order.


3. Michael has just paid for a property and casualty insurance policy for the Dalton Medical Clinic. How is


this type of insurance classified under HIPAA?


A. Property and casualty insurance policies are federally funded clearinghouses.


B. Property and casualty insurance polices are not classified as covered entities.


C. Property and casualty insurance policies are non-exempt entities.


D. Property and casualty insurance policies are covered entities.


4. A provider instructs an administrative staff member to bill a patient for a particular procedure. The


conversation is overheard by another patient who is sitting in the waiting room. This situation would be


describes as a(n)


A. incidental use and disclosure, which is not a violation of HIPAA rules.


B. illegal disclosure of protected health information.


C. release of information, which is a violation of HIPAA rules.


D. disclosure of de-identified health information.


5. In an electronic healthcare information system, a type of program that harms the information system,


and that’s often brought into the organization through e-mail attachments or Internet downloads, is called


A. a proxy server.


B. encryption.


C. a firewall.


D. malware.


6. In the United States, the main federal government agency that’s responsible for healthcare and that


administers the Medicare and Medicaid programs is


A. the American Health Information Management Association (AHIMA).


B. the Centers for Medicare and Medicaid Services (CMS).


C. the American Medical Association (AMA).


D. the Health Care Financing Administration (HCFA).


7. To protect electronic health information, many covered entities prevent employees from accessing the


information unless they have a certain job title or job function. This type of technical security safeguard is




A. a firewall.


B. antivirus software.


C. encryption.


D. role-based authorization.


8. A pathology laboratory is contracted with Winchester Hospital to review the hospital’s biopsy specimens.


Under HIPAA, the laboratory would be classified as a(n)


A. business associate.


B. direct provider.


C. clearinghouse.


D. indirect provider.


9. A hospital’s security system requires an individual’s unique fingerprint, voice pattern, facial pattern, or


eye/iris pattern to access protected health information. These unique methods of individual identification


are known as


A. biometrics.


B. backup procedures.


C. audit controls.


D. digital certificates.


10. According to the HIPAA Security Standards for electronic protected health information, issues such as


workstation security, facility access controls, and device controls are covered under _______ standards.


A. physical


B. technical


C. administrative


D. organizational


11. To protect electronic health information, the information may be transformed into an unreadable format


before it’s distributed to anyone. This type of security safeguard is called


A. antivirus software.


B. encryption.


C. a firewall.


D. password protection.


12. Which of the following statements about the HIPAA Privacy Rules is correct?


A. It’s a HIPAA violation if a provider’s name appears on a patient’s telephone caller ID.


B. There are no restrictions on the use or disclosure of de-identified health information.


C. Providers are required to provide the Notice of Privacy Practices to patients receiving emergency treatment.


D. It’s a HIPAA violation to have a patient sign-in sheet at a facility’s front desk.


13. Which of the following is the computer-to-computer transfer of routine business information that has


helped healthcare businesses to greatly simplify their administrative practices?


A. Treatment, Payment, and Health Care Operations (TPO)


B. Electronic data interchange (EDI)


C. Notice of Privacy Practices (NPP)


D. Group health plans (GHP)


14. Having a backup procedure for the computer systems in a health clinic is an example of satisfying


A. a technical security standard.


B. an implementation specification.


C. a physical security standard.


D. an administrative security standard.


15. Any direct personal contact between a patient and a health care provider in any place of service for the


diagnosis and treatment of an illness or injury is called a(n)


A. complaint.


B. encounter.


C. authorization.


D. liability.


16. Which of the following organizations creates and promotes standards for the transfer of data to and


from the pharmacy services sector of the health care industry?


A. The National Committee on Vital and Health Statistics (NCVHS)


B. The Strategic National Implementation Process (SNIP)


C. The National Drug Code (NDC)


D. The National Council for Prescription Drug Programs (NCPDP)


17. Rachel receives health insurance through her job as a privacy officer at the MEA clinic. She has just


resigned from her job, but the office manager tells her that she’ll be allowed to continue her health coverage


under the employer’s plan for a limited time period, at a cost of $395.00 per month. Which of the following


acts allows Rachel to continue her health care coverage with her former employer?






End of exam






18. The Blue Ridge Surgery Group has developed a new Web site that describes its services and benefits.


According to HIPAA rules, which of the following must be included on the organization’s Web site?


A. A complete description of all procedures provided


B. A list of the types of insurance they accept


C. A Notice of Privacy Practices


D. A listing of all physicians on staff and their professional credentials


19. Frequently, electronic health information must be transferred from one user to another over the Internet


or through a computer network. To ensure that the remote user is authorized to receive the data, an


electronic authorization called a(n) _______ can be issued to the remote users by a covered entity.


A. emergency access procedure


B. digital certificate


C. contingency


D. computer administrator


20. HIPAA refers to any item, collection, or grouping of individually identifiable protected health


information as a


A. notice of privacy practices.


B. billing record.


C. designated record set.


D. health plan identifier.




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