Protecting employee health information is more than a legal requirement—it’s a reflection of your organization’s integrity and trust. The Health Insurance Portability and Accountability Act (HIPAA) sets the national standards for safeguarding personal health information, ensuring that every piece of medical data shared or stored through your group health plan remains private and secure.

For employers, HIPAA compliance is essential. If your business sponsors a group health plan, whether self-funded or fully insured you’re responsible for following strict administrative, physical, and technical safeguards. These rules control who can access health information, how it’s stored, and how it’s shared. Failure to comply can result in costly penalties, ranging from hundreds to thousands of dollars per violation, and can quickly escalate if the issue involves willful neglect or a data breach.

Beyond fines, HIPAA compliance helps protect your reputation and your employees’ confidence. Employees trust that their personal health details will remain confidential and maintaining that trust is crucial to a strong workplace culture. Having the right policies, privacy notices, and training in place not only keeps your plan compliant, it demonstrates that your business values privacy and professionalism at every level.

.