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First HIPAA Settlement

July 29, 2010

As we previously mentioned, Connecticut Attorney General Richard Blumenthal filed the first HIPAA-related lawsuit. That lawsuit has now been settled, also a first.

The settlement agreement between the State of Connecticut and the defendants (Health Net) is the result of the loss of a computer disk drive that had unencrypted health information for 1.5 million health plans. Health Net, under the terms of the settlement, has agreed to pay $250,000 to the state of Connecticut, offer 2 years of credit monitoring to those affected, obtain identity theft insurance and reimburse those affected for security freezes. They will also be required to greatly improve their security measures.

In addition, if the information that was breached is misused, there are further financial payments that would be required under this settlement.

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