True or False: Non-compliance with HIPAA rules can lead to civil and criminal penalties.

Non-compliance with HIPAA rules can indeed lead to both civil and criminal penalties, making the statement true. The HIPAA Privacy and Security Rules are designed to protect the privacy and security of individuals' medical information. When entities fail to comply with these regulations, they may face significant consequences.

Civil penalties can include monetary fines for violations, which may vary in severity based on the nature and duration of the violation, as well as the entity's intent. The Department of Health and Human Services (HHS) enforces these civil penalties, allowing for a structured response to non-compliance.

Criminal penalties come into play for more egregious violations, particularly when there is intent to commit fraud or malicious intent regarding the use and disclosure of Personal Health Information (PHI). Criminal penalties can include hefty fines and potentially prison time, reinforcing the gravity of adhering to HIPAA regulations.

Therefore, the understanding that both civil and criminal penalties may be imposed for HIPAA non-compliance underscores the importance of safeguarding patient information and adhering to established privacy laws.