Health Insurer to Pay Connecticut $250K for Data Breach

July 8, 2010

A California-based health insurance company has agreed to pay Connecticut $250,000 for losing a disk drive containing private information of 1.5 million customers, including nearly 450,000 state residents.

Attorney General Richard Blumenthal announced that along with the settlement, Health Net has agreed to provide services to customers including free credit monitoring.

The state sued Health Net in January after the company reported it lost a portable disk drive from its Shelton office in May 2009 but didn’t tell customers until November 2009.

Blumenthal says the disk drive contained information on 446,000 Connecticut residents and customers in New York, New Jersey and Arizona.

A Health Net spokeswoman said the company has found no evidence the data has been misused. The company also said it has worked with state regulators to enhance its security systems.

Topics Carriers Cyber Data Driven Connecticut

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Latest Comments

  • July 12, 2010 at 10:00 am
    apple says:
    It's good ways that punish them for fines.But should focus on improvement of healthcare system. As a gold-certificated partner of Microsoft , nSynergy Co,ltd do better in thi... read more
  • July 8, 2010 at 1:52 am
    insurance geek says:
    Midwest keith, ACE, Chartis, Chubb, Travelers - everyone is hopping on the Cyber Liability bandwagon...I dont believe the fines would be picked up however, but the cost of cr... read more
  • July 8, 2010 at 1:39 am
    Hillaryville says:
    Another company previously based in CT that Blumenthal (Spitzer, Jr.) has chased out. Now he wants to be Senator?

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