Arizona High Court Revives Privacy Lawsuit Stemming from Pharmacy ED Medication Disclosure
This week, the Arizona Supreme Court revived a HIPAA violation lawsuit filed by a Phoenix man over a privacy violation by a pharmacy employee related to an erectile dysfunction medication prescription. Greg Shepherd, 50, had visited his doctor for a routine medical appointment in January 2016 and his doctor provided him with a erectile dysfunction medication sample. He received a call from the Costco pharmacy later and was told that the full prescription for the ED medication was available to collect. Shepherd explained that he did not want the medication and cancelled the prescription. Shepherd called the pharmacy a month later to check whether an unrelated prescription was ready to collect, and the pharmacy informed again him that his ED prescription was still waiting to be collected. Shepherd declined the medication a second time and told the pharmacy to cancel the prescription for the second time. Shepherd, who had been trying to reconcile with his ex-wife, authorized her to collect an unrelated, regular prescription refill from the pharmacy. When she visited the pharmacy, the...
Virginia Consumer Data Protection Act Signed into Law
The Virginia Consumer Data Protection Act (CDPA) has been signed into law by Governor Ralph Northam. CDPA requires persons conducting business in the Commonwealth of Virginia to comply with new data privacy and security requirements. The CDPA takes effect on January 1, 2023. The CDPA mirrors some of the privacy and security provisions of the EUs General Data Protection Regulation (GDPR) that took effect on March 25, 2018, and the California Consumer Privacy Act (CCPA) that took effect on January 1, 2020. While there are similarities with the GDPR and the CCPA, there are some differences, so compliance with either the CCPA or the GDPR does not guarantee compliance with the CDPA. Like the CCPA, the CDPA only applies to organizations that control or process significant amounts of consumer data, with the data threshold twice as high as the CCPA, although there is no minimum revenue threshold in the CDPA. The CDPA applies to any person or business that: Controls or processes the personal data of 100,000 or more Virginia residents in a calendar year; or Controls or processes the data of...
Two Employees Fired for Impermissible PHI Disclosures to Third Parties
Humana has discovered an employee of a subcontractor of a business associate impermissibly disclosed the protected health information of 62,950 of its members to a third-party for training purposes. Cotiviti was contracted by Humana to provide assistance requesting medical records and used a subcontractor to review the requested medical records. Under HIPAA, subcontractors used by business associates are also required to comply with HIPAA. The privacy violations occurred between October 12, 2020 and December 16, 2020 and Cotiviti notified Humana about the HIPAA violation on December 22, 2020. Cotiviti has worked with Humana to ensure that safeguards are implemented to prevent similar privacy breaches in the future, and that those safeguards are put in place at any subcontractors it uses. The individual who disclosed the data is no longer employed by the subcontractor. The types of data disclosed includes member names’, addresses, phone numbers, email addresses, dates of birth, full or partial Social Security Numbers, insurance identification numbers, provider names, dates of...
PHI of More Than 100,000 Elara Caring Patients Potentially Compromised in Phishing Attack
Elara Caring, one the largest providers of home-based healthcare services in the United States, has suffered a phishing attack that has impacted more than 100,000 patients. In mid-December, suspicious activity was identified in some employee email accounts. Prompt action was taken to secure the accounts to prevent further unauthorized access and a third-party security firm was engaged to investigate the breach. The investigation confirmed that multiple employee email accounts had been accessed by an unauthorized individual, although no evidence was found to suggest any patient information in those accounts was viewed or obtained by the attackers. It was, however, not possible to rule out data theft. A review of the compromised email accounts revealed they contained the PHI of 100,487 patients, including names, addresses, Social Security numbers, driver’s license numbers, Employer ID numbers, financial/bank account information, dates of birth, email addresses and passwords, insurance information and insurance account numbers, and passport numbers. Individuals affected by the breach...
Small and Medium Sized Practices Under Increased Pressure from Cyberattacks
2020 saw cyberattacks on healthcare organizations increase significantly. While large healthcare organizations are being targeted by Advanced Persistent Threat (APT) groups and ransomware gangs, there has also been a marked increase in attacks on small- to medium-sized healthcare organizations. A cyberattack on a large healthcare organization could allow the hackers to steal large quantities of protected health information and ransomware attacks typically see ransom demands issued for millions of dollars. The rewards from these attacks are considerable, but large healthcare organizations tend to invest heavily in cybersecurity and often have their own IT security teams to protect and monitor their IT networks. Cyberattacks on these organizations require more skill and they can be difficult and time consuming. Medium-sized healthcare organizations also store large amounts of sensitive data, yet their networks tend to be less well protected, which makes cyberattacks much easier and still highly profitable. Cyberattacks on Small- and Medium-Sized Healthcare Organizations are...



