Health Information Management

EDS Corp. to pay $250,000 for mailing blunder

HIPAA Weekly Advisor, September 22, 2008

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EDS Corp. of Texas will pay $250,000 as part of a settlement for a mailing mistake that resulted in a privacy breach potentially affecting 260,000 Medicaid, BadgerCare and SeniorCare patients in Wisconsin, the Associated Press (AP) reported September 8.
 
The healthcare reimbursement claims processing company mailed brochures with patients’ Social Security numbers printed on the address labels in January, according to the AP article published in the Chicago Tribune.
 
The settlement also requires EDS Corp. to update its system so it can process patient ID numbers instead of Social Security numbers, to audit its mailing operations, and to provide privacy training for its work force, according to the AP. 
 
"We regret, once again, the impact but clearly our actions have shown how aggressively we've stepped up to address this situation," EDS spokesman Bill Ritz told the AP. "We never shied away from our responsibility in this. That's what a partner does. We value our long business relationship with the state."
 
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