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Aetna Life Insurance Company and the affiliated covered entity (Aetna) has agreed to settle multiple potential HIPAA violations with the Department of Health and Human Services’ Office for Civil Rights (OCR) that were discovered during the investigation of three data breaches that occurred in 2017.
The first of those data breaches was reported to OCR in June 2017 and concerned the exposure of the protected health information (PHI) of health plan members over the Internet. Two web services were used to display health plan-related documents to its members, but those documents could be accessed over the Internet without the need for any login credentials.
The lack of authentication allowed the documents to be indexed by search engines and displayed in search results. Aetna’s investigation revealed the PHI of 5,002 individuals had been exposed, which included names, insurance identification numbers, claim payment amounts, procedures service codes, and dates of service.
The second two HIPAA breaches involved the exposure and impermissible disclosure of highly sensitive information in two mailings to plan members. In both mailings, window envelopes had been used which allowed PHI to be viewed without opening the envelopes.
The first mailing in July 2017 saw benefit notices sent to 11,887 individuals who were receiving HIV medication, either for treatment or prophylaxis. The words “HIV medication” could be seen through the windows of the envelope, along with the name and address of each individual.
The second mailing, sent in September 2017, concerned a research study on individuals with an irregular heart rhythm. Through the windows of the envelope the name and logo of the atrial fibrillation research study were clearly visible along with the name and address of the recipient. The mailing was sent to 1,600 individuals.
These three incidents resulted in the impermissible disclosure of the PHI of 18,489 individuals and during the course of the investigation OCR investigators uncovered several other violations of the HIPAA Rules.
- Aetna had not performed periodic technical and nontechnical evaluations of operational changes affecting the security of their electronic PHI (ePHI), in violation of 45 C.F.R. § 164.308(a)(8);
- Procedures had not been implemented to verify the identity of individuals or entities looking to access their ePHI, in violation of 45 C.F.R. § 164.312(d);
- Disclosures of ePHI had not been limited to the minimum necessary information to achieve the purpose for the disclosure, in violation of 45 C.F.R. § 164.514(d); and
- There was a lack of appropriate administrative, technical, and physical safeguards to protect the privacy of PHI, in violation of 45 C.F.R. § 164.530(c).
“When individuals contract for health insurance, they expect plans to keep their medical information safe from public exposure. Unfortunately, Aetna’s failure to follow the HIPAA Rules resulted in three breaches in a six-month period, leading to this million-dollar settlement,” said OCR Director Roger Severino.
In addition to the financial penalty, Aetna has agreed to adopt a corrective action plan to address all areas of HIPAA noncompliance discovered by OCR. OCR will be monitoring Aetna closely for noncompliance with the HIPAA Rules for 2 years.
Settlements totaling $2,725,170 were agreed in 2018 to resolve HIPAA violation cases brought by state attorneys general in California ($935,000), Connecticut ($99,959), New Jersey ($365,211.59), New York ($1,150,000) and the District of Columbia ($175,000) over these data breaches. In 2018, Aetna also settled a class action lawsuit filed on behalf of victims of the HIV medication mailing incident for $17 million.
This year has already seen more penalties imposed on covered entities and business associates than any other year since OCR was given the authority to impose fines for HIPAA violations. There have been 14 settlements announced this year totaling $13,211,500.