Health Net and its affiliates agreed to settle a lawsuit...
Health Net and its affiliates agreed to settle a lawsuit by Connecticut alleging failure to protect medical records of more than 500,000 customers there, the attorney general’s Office said. The state investigated last year after the company lost a computer…
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disk containing health information on 1.5 million consumers nationally (WID Nov 23 p4). The disk held names, addresses, Social Security numbers and financial and protected health information, the office said. Health Net delayed notifying consumers, the state found, and a company investigation concluded that the disk probably had been stolen. Health Net will pay statutory damages of $250,000 to the state under the settlement and, if someone uses the information illegally, an additional $500,000, said Attorney General Richard Blumenthal, a Democrat running for Senate. The company also promised to protect patient data by improving employee training and system controls, management and oversight.