Anthem 78.8 Million Breach Notification Letter Mailing Almost Finished
According to a recent statement issued by Anthem spokeswoman, Sarah Yeager, the insurer expects to have completed the arduous task of mailing 78.8 million past and present policyholders – and other individuals – to advise them that their data has been compromised and obtained by hackers. Under the Health Insurance Portability and Accountability Act – specifically the Breach Notification Rule – all covered entities (CEs) are required to send notification letters to all individuals affected by a data breach and to complete the process no later than 60 days following the discovery of the breach. It would appear that Anthem needed all of that time to complete such a monumental task. In spite of the scale of the attack, only 937,478 individuals have so far signed up for the credit monitoring services offered by the insurer through AllClear ID. That figure is almost certain to rise considerably over the coming weeks as all the letters are finally sent. According to an article in Hartford Courant, in spite of the scale of the attack and the number of individuals affected, the...
Investigations Mount into LifeWise HIPAA Breach
The LifeWise Health Plan of Oregon is being investigated by Washington State and Alaska in the wake of the huge HIPAA breach to affect its parent organization, Premera Blue Cross. Now the state of Oregon has decided to conduct an investigation into the breach after it was determined that approximately 250,000 state residents had been affected. The attack on Premera Blue Health and LifeWise Health Plan – which shared the same IT infrastructure for claims – first occurred in May 2014. Data going back to 2012 was potentially obtained by the thieves. However there was no evidence of data being copied leading experts to believe the attack was highly sophisticated in nature and that data access was somehow masked. The volume of data potentially exposed – and its detailed nature – make this hacking incident the largest ever reported and the most serious and by some distance. Last year 4.5 million records were exposed in a hacking incident at Community Health Systems and the Tricare data breach in 2009 exposed 4.9 million records. In total, 11 million records were exposed in the...
Data Breach Bill Rejected by New Mexico Senate
The New Mexico Data Breach Notification Act (HB 217) may have been unanimously passed by the house, but the senate has rejected the Act, which would have required businesses to notify customers in the case of a breach of Personally Identifiable Information (PII). The New Mexico description of PII includes Social Security numbers, Government ID numbers, Driver’s license numbers, credit/debit card numbers, bank accounts and information giving access to financial accounts; in cases where that is combined with the person’s full name or last name and initial; although data covered by the Gramm-Leach-Bliley Act of 1999 and the Health Insurance Portability and Accountability Act of 1996 are exempted. The decision not to pass the Act is peculiar. It went before the senate and was unanimously passed by the Corporations Committee; however the Act did not get passed the Judiciary Committee, even though no one voiced concern over the bill. Rep. The rejection however now means that in New Mexico, any individual affected by a data breach involving PII will not be required by law to be notified...
HIPAA Violation Warning Issued About Medical Record Subpoenas
Law firm, Day Pitney LLP, has issued a warning to healthcare professionals to be cautious about disclosing Protected Health Information, even when asked to provide medical records to attorneys under subpoena. A Connecticut Supreme Court ruling in November 2014 permitted a negligence claim to be filed against a healthcare provider for non-compliance with HIPAA Rules governing the disclosure of PHI to third parties. The court ruled that HIPAA Privacy Rules cover Protected Health Information even when that information is required by attorneys, and requested through proper legal processes. In Connecticut at least, PHI can only be released under subpoena if certain criteria are met. The court cited the Code of Federal Regulations, 45 C.F.R. § 164.512(e)(1)(ii) , which only permits the transfer of Protected Health Information if “satisfactory assurances” have been received that the person whose medical records have been requested to be disclosed has received a notice of the access request. As pointed out by Susan R. Huntington of Day Pitney, in order for PHI to be released under HIPAA...
10 HIPAA Breach Costs You May not Be Aware of
A data breach is less of a possibility and more of inevitability in 2015. Cyber crime is on the increase and the healthcare industry is under threat, with major attacks already having exposed millions of records – with last year’s tally having already been surpassed by some distance. Determining the data breach financial impact can be difficult as there are variables that cannot be accurately predicted immediately after a breach has occurred. Civil claims for damages will almost certainly be filed, although the number of victims of fraud will not be known for many years, neither the damages which will need to be covered. The Department of Health and Human Services’ Office for Civil Rights investigates data breaches; however it can take time for an assessment to take place. A full compliance audit may be required, the findings assessed and financial penalties considered. Settlements can take a number of years to be reached and there is no telling how many violations will be discovered by its auditors. Each violation category carries a maximum fine of $1.5 million in cases where the...



