This document summarizes a novel scheme for compressed image authentication using least significant bit (LSB) watermarking and enhanced modified RC6 (EMRC6) encryption. The proposed method converts an input image to JPEG2000 format, encrypts a watermark image with EMRC6, and embeds the encrypted watermark in the compressed cover image using LSB watermarking. Test results show the watermarked image has high quality and the extracted watermark is secure. The proposed method achieves a higher PSNR than an existing method using LSB and modified RC6, increasing embedding volume and security for medical image authentication.