Conn. Insurance Dept fines Health Net $375,000 for data breach
NEWS IN BRIEF — Posted Nov. 22, 2010
The case of a disappearing disk drive in 2009 already has cost health insurer Health Net $250,000 in a settlement with the Connecticut attorney general's office. Now the state's insurance department has fined the company $375,000.
After the unexplained loss of a portable disk drive from its Shelton, Conn., office in May 2009, Health Net waited until November 2009 to notify regulators, even though personal information for 500,000 people was compromised, according to authorities.
The insurance department also required the company to improve its data security measures.
"To date, Health Net has no evidence that there has been any misuse of data," a company statement said. The company offered free credit monitoring to affected members.
Health Net sold renewal rights to its business in Connecticut, New Jersey and New York to UnitedHealth Group in December 2009.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/11/22/bibf1122.htm.