Connecticut Attorney General Richard Blumenthal filed the lawsuit, arguing that Health Net failed to secure private medical records and financial information. It also failed to promptly notify consumers endangered by the security breach, the lawsuit alleges.
Blumenthal is also seeking an injunction blocking Health Net from violating the Health Insurance Portability and Accountability Act (HIPAA). It is the first action by a state attorney involving HIPAA since state attorneys were given the right to enforce the legislation.
Health Net – now owned by UnitedHealth Group and Oxford Health Plans – suffered the loss of a portable disk drive last May containing health information, social security numbers, and bank account numbers of the victims. Insurance claim forms, membership forms, appeals and grievances, correspondence and medical records were among the information compromised. The data was unencrypted.
"Protected private medical records and financial information on almost a half million Health Net enrollees in Connecticut were exposed for at least six months – most likely by thieves – before Health Net notified appropriate authorities and consumers,” Blumenthal said, adding that Health Net downplayed the danger.
Comments
Susan Callahan says:
15 January 2010
Bravo to Attorney General Blumenthal. I am happy to see someone as important as Attorney General Blumenthal take a strong stance toward those entities that are not doing everything that they can to ensure the security and privacy of people's most confidential data -- health records, social security and bank account numbers. With the pervasiveness of portable storage devices and the selling of personal information surging, all confidential data should be encrypted. There are many encryption solutions on the market that are affordable and easy to implement that could have prevented data leaks like these. Therefore there is no excuse for companies that do not take the proactive steps needed to protect your confidential information. From my perspective, AG Blumenthal is doing an excellent job by taking a stand for everyone's right to privacy.
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