Health Net carelessly loses 1.5 million Health Records and violates HIPAA law in doing so - January 16, 2010
Orlando Florida -- Connecticut Attorney General Richard Blumenthal has filed a lawsuit charging Health Net of Connecticut Inc. with violations of the HIPAA privacy and security rules following a large breach of identifiable medical records and Social Security numbers.
Blumenthal's office believes this is the first lawsuit by a state's chief legal officer since the HITECH Act last year gave state attorneys general authority to prosecute HIPAA privacy and security violations.
Parent company Health Net in Los Angeles last November reported to insurance officials in four states the disappearance in May of a hard drive with protected health information on 1.5 million members, including 446,000 in Connecticut. The data was not encrypted, but Health Net said it is invisible without the use of specific software. The company attributed the delay in reporting the breach to a lengthy forensic investigation to determine what information was on the hard drive. "Had Health Net used some basic data encryption products they would not of found themself about to get fines in the millions, says Brian McCarthy CEO and Data Protection expect for Sencilo HealthIT Solutions in Lake Mary Florida. Everyone of our clients over the past 6 years start off with "it can't happen to me" but we demostrate just how simple it is to steal both paper and digital records, and we always
win them over.
In the lawsuit, Blumenthal charges Health Net did not have adequate legal grounds to delay notifying members of the breach and that the delay constituted an unfair trade practice under state law. "Under information and belief, no law enforcement agency determined that the notification to affected Connecticut residents would have impeded a criminal investigation and requested that the notification be delayed," according to the suit.
Blumenthal is seeking a court order blocking Health Net from further HIPAA violations and requiring encryption of all protected health information on portable electronic devices. He also seeks civil fines.
New federal rules mandated under the HITECH Act require "timely" notification of certain breaches of health information. The rules were effective in September and have a compliance deadline of Feb. 22, 2010.
Health Net of Connecticut on Jan. 13 released the following statement within hours of receiving the lawsuit: "Protecting the privacy of our members is extremely important to us. Health Net's company policy states that data must be encrypted and secured. Health Net has just received a copy of the lawsuit and is in the process of reviewing it. We will continue to work cooperatively with the Connecticut Attorney General on this matter.
"To date, Health Net has found no evidence that there has been any misuse of the data. Health Net is offering two years of free credit monitoring services for all impacted members who elect this service. This service also includes $1 million of identity theft insurance coverage and enrollment in fraud resolution services for two years, if needed. Additionally, if members experience any identity theft between May 2009 and the data of their enrollment, Health Net will provide services to restore the member's identity at no cost to the member." I have heard this says a hundred times from companies "after" a breach, take my word for it, Health Net's client records are being sold and making the bad guys rich off their carelessness.
For more information please call (407) 641-5199 or visit us at: http://www.sencilo.com and let us "Uncomplexify your Information Technology"
Why Sencilo HealthIT Solutions
When it comes to your healthcare computing needs, Sencilo HealthIT Solutions's main objective is to provide a turnkey solution
that can essentially sustain itself. When you choose Sencilo HealthIT Solutions, you don't just gain a vendor who provides you
with technology. You get a business partner who walks with you through every step of the process
Sencilo HealthIT Solutions eHealthcare Architecture: More than technology
With Sencilo HealthIT Solutions eHealthcare Architecture, you can leverage the same productivity tools and technology resources
that have transformed business. And you get a full portfolio of services too. By working with Sencilo HealthIT Solutions, you can
get:
A dedicated customer team
A website customized for your institution
A full portfolio of robust solutions
Easy setup, implementation and maintenance
Simple ordering and delivery
Technology training
Flexible financing options
Sencilo HealthIT Solutions Professional Services makes it easy
In addition to providing high-quality technology at a low cost, Sencilo HealthIT Solutions Professional Services can help you plan
your healthcare computing from the ground up. By working with you from the initial construction phases, we can help you save time
and money ÂÂand lead to a truly customized solution.
Sencilo HealthIT Solutions Professional Services offers complete services that include:
Design
Procurement
Installation
Training
Maintenance
Support
About Us
Sencilo HealthIT Solutions is a Florida-based integrator specializing in EHR Cost Cutting storage, security and managed services
solutions. Sencilo delivers a comprehensive portfolio of products from best-of-breed hardware and software from multiple
manufacturers including Allscripts, VMware, Dell Fujitsu Data Domain, EMC, Hitachi, Symantec, HDS, IBM, Commvault, Xiotech and HP.
Sencilo has offices throughout Florida including: Orlando Lake Mary Daytona, Medical City
solutions include BC DR planning Replication De-Dup De-Dupe iSCSI SAN NAS VMware Security "meaningful use" "meaningful usage" EMC
NetApp HP IBM Quantum Compliance VTL Data Domain vs Gartner Magic Quadrant Quadrent LTO Network Backup appliance Data Recovery
Backup Health IT Healthcare IT Digital Hospital Allscripts Patient Data electronic health record P4P rules and the HITECH Act
PayerView Rankings practice management tools $44,000 in Medicare or $66,000 in Medicaid from the American Recovery and
Reinvestment Act eClinicalWorks, Allscripts, NextGen, GE Centricity, and Meditech Electronic Healthcare IT Medical Records EHREHR
Clinical Practices eClinicalWorks Allscripts Florida EMR, EHR, electronic medical record, health, records, practice management
systems solutions, medication services, PHR Otolaryngology, Orthopaedics, Pain Nuerosurgery, Urology, Ophthalmology, Cardiology,
Billing, Appointment Scheduling, clinicalworks, eClinicalWorks, solutions for physicians, hospitals, clinical education and
medical services Computerized Patient CPR, Order Entry, CPOE, Document Clinical Information Informatics, Computer-based, SOAP,
HIT, Healthcare Encounter Forms, web based, online, clinical rules database, electronic prescribing, e-prescribing, eprescribing,
athenaClinicals, certified EMR, certified EHR, HITECH Act VAR Reseller Dealer hipaa privacy doctor, healthcare performance
management, data security, hosting, arra, free, InterFAX, MyWay, HIPPA, EasyPayMedicare, MedicAID, SureScripts, FNC, billing,
superbill iMedica Tiger on Windows, eprescribe pqri simple practice management revenue cycle e-cw e-clinicalworks greenway emds
nextgen ge sage athena epic klas Dragon NaturallySpeaking speech recognition Google Health, Microsoft Healthvault Health Internet
certified "meaningful use" violations
