Connecticut To Investigate Loss Of Health Data By Insurer

by Gopalan on  November 22, 2009 at 1:02 PM Health Insurance News
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While asserting that they would go all out to protect the privacy of their clients, they also noted that to date there was no report of misuse of any of the data that has now disappeared.

However, Health Net will provide credit monitoring for over two years - free of charge - to all impacted members who elect the service, and will provide assistance to any member who has experienced any suspicious activity, identity theft or health care fraud between May 2009 and their date of enrollment.

Attorney General Blumenthal vowed that he would "vigorously and aggressively seek damages, penalties and other appropriate remedies, if warranted." He also said his office will demand identity theft insurance and reimbursement for credit freezes, along with credit monitoring, for at least two years, for all of the impacted consumers.

"My investigation will seek to establish what happened and why the company kept its customers and the state in the dark for so long," Blumenthal said. "The company's failure to safeguard such sensitive information and inform consumers of its loss -- leaving them naked to identity theft -- may have violated state and federal laws."

Anthem Blue Cross and Blue Shield, a unit of WellPoint Inc, is also facing a data breach investigation by Blumenthal, who recently alleged the health insurer waited two months to tell 18,817 health care providers in the state that a laptop computer containing their personal information, including some Social Security numbers, was stolen.

Blumenthal said he will demand Health Net provide consumers with comprehensive, long-term identity theft protection.

"My investigation will seek to establish what happened and why the company kept its customers and the state in the dark for so long," Blumenthal added. "The company's failure to safeguard such sensitive information and inform consumers of its loss -- leaving them naked to identity theft -- may have violated state and federal laws. I will vigorously and aggressively seek damages, penalties and other appropriate remedies, if warranted."



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