Tuesday, January 25, 2011

Insurance Company Fined by Attorney General for Violations of Security Breach Notice Laws

The Attorney General of Vermont filed a complaint and proposed settlement regarding the loss of protected health information by Health Net, Inc., and Health Net of the Northeast, Inc.

The settlement includes a fine of $55,000, a mandatory data-security audit, and reports on the company’s information security programs for the next two years.

Previously Health Net had been fined $250,000 to settle a HIPAA lawsuit by the Connecticut Attorney General and fined $375,000 by Connecticut Insurance Department over a health information breach.(b)
"Companies must be careful to prevent Vermonters’ sensitive information, especially their medical records, from falling into the wrong hands." - Vermont Attorney General William Sorrell (a)
Learn how the Veriphyr Identity and Access Intelligence service effectively prevents or quickly detects inappropriate access to electronic medical records.

Sources:
(a) Attorney General Settles Security Breach Allegations Against Health Insurer - The office of the Attorney General of Vermont, 1/2011
(b) Health Net Fined Again for Breach - Healthcare Info Security, 1/2011


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