What had been the first use of the enforcement authority under the HIPAA privacy regulations granted to a State Attorney General, has ended in a settlement agreement between Connecticut’s Insurance Department and Health Net of Connecticut. Under the agreement, Health Net will pay $375,000 in penalties, and it agreed to provide credit monitoring protection for 2 years to all affected persons in Connecticut and to take significant steps to improve data and equipment security in both its Shelton, CT locations.

One important item to note from the Insurance Department’s press release is that the "most prominent failure stemmed from the untimely notification of the 2009 loss of a disk drive from the Shelton location resulting in the loss of personal health information of approximately 500,000 Connecticut members." This should be a reminder to any entity involved in a data breach of the importance of acting quickly to notify affected individuals.