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Health Net to pay Conn. $250,000 in settlement

Posted on July 6, 2010 by Dissent

Cara Baruzzi reports:

Health Net will pay the state at least $250,000 and implement stronger consumer protections to settle allegations the insurer failed to secure medical records, financial information and other private data on more than 440,000 Connecticut members, state officials said Tuesday.

Attorney General Richard Blumenthal, who sued the company in the wake of a security breach last year, announced the settlement, calling it the first of its kind in the nation.

It resolves allegations that Health Net violated the Health Insurance Portability and Accountability Act, commonly known as HIPAA, and state privacy protections regarding personal information such as Social Security numbers and financial information.

Read more in the New Haven Register.

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