Corporate Compliance

Health Net pays $375K to settle data breach

Compliance Monitor, November 17, 2010

Health Net of Connecticut agreed to pay $375,000 to Connecticut Insurance Department for failures to safeguard the personal information of its members from misuse by third parties, according to a Connecticut Insurance Department press release.

Health Net’s largest offense occurred in 2009 when it failed to notify its members of a loss of a disk drive from the Shelton location in a timely manner. The breach resulted in the loss of personal health information of approximately 500,000 Connecticut members.

Health Net will provide two years of credit monitoring protection to all Connecticut members and providers who were affected by the 2009 data breach. Health Net has also improved its data and equipment security in both Shelton locations. Under the terms of the settlement, Health Net will not pass the cost of those improvements along to its members.

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