CPA · Question 16 · Area II: Security
A covered entity under HIPAA uses a cloud service to store Patient Health Information (PHI). The cloud provider experiences a data breach where unencrypted PHI is exposed. Under the HIPAA Breach Notification Rule, which of the following actions is REQUIRED?
Answer options:
The cloud provider must notify the patients directly within 60 days.
The covered entity must notify affected individuals without unreasonable delay, and no later than 60 days following discovery.
Notification is only required if the breach involves more than 500 individuals.
The covered entity must pay a fine before notifying individuals.
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