Empire recovers missing CD
HIPAA Weekly Advisor, March 26, 2007
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New York-based Empire Blue Cross Blue Shield on March 14 recovered a missing compact disc (CD) containing members' information.
Health Data Management Solutions (HDMS), a third party vendor to Magellan, an Empire benefit program administrator, sent the CD to Empire via UPS, only to have it disappear in transit. Empire mailed notification letters to affected members in early March.
In a release, Empire said that Magellan did not follow proper security procedures in handling the CD. "We are addressing these issues and we have made it clear to both HDMS and Magellan that their security practices with respect to the data transfer were unacceptable," the payer announced.
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