COMMERCIAL CONTRACTS | PRIVACY & DATA PROTECTION | CORPORATE GOVERNANCE & COMPLIANCE
A Law Firm Built for Complex Regulatory Landscapes.
Recent Regulatory Updates
Regulatory Update: Annual Civil Monetary Penalty Inflation Adjustment (HHS)
Effective January 28, 2026 — The U.S. Department of Health and Human Services (HHS) published its annual adjustment of civil monetary penalties (CMPs) to reflect inflation, as required under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
This rule increases penalty amounts across various healthcare regulatory programs administered by HHS, including:
• HIPAA privacy and security enforcement
• Medicare and Medicaid program requirements
• Hospital price transparency obligations
• Stark Law–related sanctions and other statutory penalties
The updated amounts take effect immediately and apply to penalties assessed after publication where permitted by law.
Why This Matters:
Although this rule does not create new enforcement authority, it raises the financial exposure associated with noncompliance. Healthcare providers, business associates, and other regulated entities should ensure their privacy, compliance, and governance programs are operating effectively and consistently with current standards to mitigate increased penalty risk.
For full details, see the official Federal Register notice:
https://www.federalregister.gov/documents/2026/01/28/2026-01688/annual-civil-monetary-penalties-inflation-adjustment.
Regulatory Update: HIPAA Notice of Privacy Practices Changes -Compliance by February 16, 2026
Source: U.S. Department of Health and Human Services (HHS), Office for Civil Rights (OCR).
In April 2024, HHS issued a final rule modifying the HIPAA Privacy Rule to strengthen privacy protections for reproductive health information and to update certain Notice of Privacy Practices (NPP) requirements. The rule was published at 89 Fed. Reg. 32976 (April 26, 2024).
Among other changes, the rule revised 45 CFR 164.520 to require updates to covered entities’ Notices of Privacy Practices. These updates were intended to address disclosures involving reproductive health information and incorporate related regulatory changes.
On June 18, 2025, the U.S. District Court for the Northern District of Texas vacated most of the rule. However, according to HHS, certain NPP modifications remain in effect and must be implemented by February 16, 2026.
HHS further explains that the court vacated specific NPP provisions at 45 CFR 164.520(b)(1)(ii)(F), (G), and (H), while other NPP-related changes remain in force.
Practical Considerations
Healthcare providers, health plans, and healthcare clearinghouses should review their current Notices of Privacy Practices to determine whether updates are required under the remaining portions of 45 CFR 164.520 and ensure compliance by February 16, 2026.
Official Sources
• OCR Fact Sheet (includes judicial update and compliance date):
https://www.hhs.gov/hipaa/for-professionals/special-topics/reproductive-health/final-rule-fact-sheet/index.html
• Federal Register Publication (89 Fed. Reg. 32976, April 26, 2024):
https://www.federalregister.gov/documents/2024/04/26/2024-08503/hipaa-privacy-rule-to-support-reproductive-health-care-privacy
Practice Focus
Privacy and Data Protection Regulatory Compliance
Advising on HIPAA, healthcare privacy, and data protection obligations; policy development; disclosure analysis; and compliance implementation.
Healthcare Regulatory Compliance and Audit Readiness
Counseling on federal and state healthcare requirements; audit preparation; regulatory response; and oversight matters.
Compliance Program Design and Remediation
Structuring and revising compliance frameworks; internal assessments; corrective action strategy.
Government Investigations and Enforcement Proceedings
Representation in regulatory inquiries, administrative proceedings, and enforcement actions.
Federal and State Tax Controversy
Representation in audits, collections matters, administrative appeals, and related proceedings.
Business Entity Formation and Regulatory Structuring
Formation of entities and governance frameworks aligned with regulatory requirements.
Commercial Contract Drafting and Negotiation
Drafting, reviewing, and negotiating agreements allocating regulatory, operational, and financial risk.

SCHEDULE A CONSULTATION TODAY
CONTACT US @
Telephone: (202) 743-6066
E-mail: eric@chelawfirm.com
Address: 1235 Pennsylvania Ave SE Unit #1058
Washington, DC 20003