In a uniquely timed second showing of enforcement authority, the Department of Health and Human Services (HHS) announced on February 24, 2011 a one million dollar settlement with a Massachusetts hospital that allegedly breached patient data. This settlement announcement comes only days after HHS announced a 4.3 million dollar HIPAA Privacy Rule fine. The
U.S. Bank Hit with Class Action Suit Alleging Data Breach Cover-Up
Paintball Punks filed a class action suit against U.S. Bank in Hennepin County, Minnesota. The case was subsequently removed on December 6, 2010, to the Minneapolis District Court. In the complaint, Paintball Punks alleges that between August and December 2009 it received 9 orders totaling approximately $11,000, which were fraudulently billed to U.S. Bank-issued cards. The amount
No Claim For Data Breach Damages Absent Financial Loss or Tangible Injury
In another favorable decision for companies, the Maine Supreme Court ruled on September 21, 2010 that consumers affected by a data breach could not claim damages from the company unless they suffered uncompensated financial losses or some other tangible injury.
The Maine Supreme Court addressed the following:
In the absence of physical harm or economic loss
Dealing with Data Breaches: Health Net Suit Highlights Need for Effective Security Incident Procedures and Training
As we have discussed before, data breach notification is one of the most rapidly emerging areas of law. Good security incident procedures as well as effective training can help avoid the risk of data breach. (Sample data breach training).
A case in point: Connecticut’s Attorney General has filed a civil action against Health Net
Data Security, Destruction and Encryption Leads the Way for States in 2010
Less than one month into 2010 the trend to address data security, destruction, and encryption has
continued among state lawmakers. Specifically, Florida, Michigan, Kentucky, Kansas, Pennsylvania, and New York all have introduced, reintroduced, or amended legislation of this kind.
- The Florida and Michigan laws would amend personal data destruction rules for companies.
- The New York law would mandate data security and encryption measures.
- The Kentucky bill would require government agencies to protect all personal data under the Gramm-Leach-Bliley Act.
- The Michigan bill includes a state version of the Federal Trade Commission’s Red Flags Rule and would require creditors in the state to implement programs aimed at spotting “red flags” of possible identity theft and put in place mitigation measures. Michigan is also considering a number of other measures.
- The Kansas law would require state agencies to engage in periodic network security reviews.
- The Pennsylvania bill would require public agencies to notify state residents of a breach of their personal information within seven days of the discovery of the breach.
While 5 states remain without data breach notice bills (Alabama, Kentucky, Mississippi, New Mexico, and South Dakota), Congress is considering legislation, the Data Accountability and Trust Act (DATA) (H.R. 2221), that would preempt all state notification laws and instead establish a national breach notice standard.
As we have previously mentioned, we anticipate data privacy and security legislation and case law to be at the forefront of legal issues in 2010. Employers should begin by reading the Data Security Primer and consider implementing comprehensive data security policies and procedures that would allow them to comply with the various state laws that may impact their business. Continue Reading Data Security, Destruction and Encryption Leads the Way for States in 2010
New Hampshire Enacts Strict Data Breach Notification Law Affecting Health Care Providers and Business Associates
New Hampshire’s new breach notification law builds on the breach notification requirements under the HITECH Act by requiring health care providers and business associates to notify individuals of disclosures of their protected health information that are prohibited by New Hampshire law, even if such disclosures are permitted under HIPAA or other federal law. This new health information protection was enacted with other measures relating to privacy of electronic medical records and allowing individuals to opt out of sharing their names, addresses, and protected health care information with e-health data exchanges.
H.B. 619 becomes effective for data breaches occurring on and after January 1, 2010. Individuals may sue for violations of the notification requirement and, significantly, seek damages of not less than $1,000 per violation. The law also expressly requires business associates to cover the costs of notification if the use or disclosure triggering notification was made by the business associate.
Now, when New Hampshire health care providers and business associates experience a possible data breach, they will have to consider a number of laws to determine the appropriate response. These include H.B. 619, the state’s general breach notification statute, and the breach notification rules under the HITECH Act and implementing regulations. This is even more complex for health care providers and business associates operating in multiple states as at least five other states (Arkansas, California, Delaware, Missouri, Texas) and Puerto Rico require notification in the event some form of medical information is breached.
Continue Reading New Hampshire Enacts Strict Data Breach Notification Law Affecting Health Care Providers and Business Associates
Health Net’s Data Breach Highlights Need for Privacy Officer with Clear Job Description
Health Net Inc., one of the nation’s largest publicly traded managed health care companies, recently notified authorities and informed affected persons, with a statement on its website, that the unencrypted personal information of 1.5 million current and former members, stored on a portable disk drive, is missing from the company’s Connecticut office. The company
Another Data Breach of Patient Records
The Baltimore Sun reports that Baltimore police are investigating a security breach at Mercy Medical Center that left certain patient records open to possible identity theft. According to the article, affected former patients were sent a letter informing them that their personal patient records may have been accessed by a former employee in order to apply
Do You Know How to Take Out the Trash?
Joining the growing number of states which have enacted laws regulating the destruction of records to prevent possible identity theft, the Rhode Island Legislature passed H. 5092 on October 29, 2009. The bill requires businesses and government agencies to completely destroy records containing personal information, or render the personal information unusable, before disposing of records whether
Reporting a Breach of HIPAA Protected Health Information to HHS
Little more than one month after the HIPAA breach notification regulations became effective (September 23, 2009), covered entities (health care providers, health plans) and their business associates are struggling with the effects of these new rules. Many are asking:
- What is a breach?
- Do we have to notify in all cases, what are the exceptions?