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Health Net Settles Connecticut Suit


July 7, 2010

Health Net has settled a lawsuit filed by Connecticut Attorney General Richard Blumenthal in January--the first such suit filed under HIPAA by a state AG--agreeing to pay $250,000 to the state and enact new privacy protection safeguards, The Wall Street Journal reports. "Protecting the privacy of our members is extremely important to us," the company said in a statement. The settlement, which was announced Tuesday, includes requirements that Health Net offer two years of credit monitoring, $1 million of identity theft insurance and reimbursement for the costs of security freezes. The settlement also includes a provision that would require a $500,000 payment to the state should the loss result in any cases of illegal identity fraud, the report states. (Registration may be required to access this story.)
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