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.

(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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