What action must a covered entity take if they breach PHI?

The correct answer is that a covered entity must notify affected individuals and report to the Department of Health and Human Services (HHS) if they breach protected health information (PHI). This requirement is established under the Health Insurance Portability and Accountability Act (HIPAA) regulations, which mandate that when a breach occurs, there are specific steps to follow to protect individuals' rights and ensure compliance with regulatory standards.

Notifying affected individuals is critical because it allows them to take necessary precautions to protect themselves from potential harm, such as identity theft or fraud. Additionally, reporting the breach to HHS is crucial for regulatory oversight and helps track patterns or issues that may need broader corrective strategies or education in the healthcare provider's operations or policies.

There are clear timelines associated with these notifications: affected individuals must be informed within a certain timeframe, usually 60 days from the date of the breach, and reports to HHS must be made depending on the scale of the breach, with larger breaches requiring direct notification to the media.

This requirement emphasizes the importance of accountability and transparency in handling sensitive health information, ensuring that individuals are adequately informed and that covered entities adhere to ethical and legal standards.