The Secure Times

An online forum of the ABA Section of Antitrust Law's Privacy and Information Security Committee

Connecticut Data Breach Suit Settled for $375,000 in Penalties

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On November 8, 2010, the Connecticut Insurance Commissioner announced that the Connecticut Insurance Department has reached a settlement with Health Net of Connecticut (“Health Net”) over Health Net’s actions during a 2009 data breach affecting approximately 500,000 Connecticut residents. The Insurance Department alleged that Health Net failed to safeguard personal health information and other personally indefinable information, including social security numbers and bank account numbers, of Connecticut residents from misuse by third parties and failed to timely notify affected residents of the data breach. The settlement requires Health Net to pay $375,000 in penalties. Since the 2009 data breach, Health Net has also provided credit monitoring protection for two years to affected Connecticut residents and agreed to improve data and information security standards to better protect information from unauthorized disclosure. Health Net’s settlement with the Insurance Department is in addition to a settlement between Health Net and the Connecticut Attorney General reached in July 2010, which required Health Net to pay the state $250,000. The Connecticut Attorney General had alleged that Health Net violated Connecticut data breach and data safeguard laws, as well as the federal Health Insurance Portability and Accountability Act (“HIPAA”).

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Author: ABA Antitrust

Learn more about the ABA Section of Antitrust Law: http://ambar.org/antitrust

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