SPOTLIGHT: Health Net data breach brings first state HIPAA enforcement

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In the first case of a state attorney general enforcing general HIPAA regulations under the American Recovery and Reinvestment Act, Connecticut Attorney General Richard Blumenthal last week sued Health Net of Connecticut for misplacing the medical and financial information of nearly 450,000 enrollees and failing to notify those affected in a timely manner. The lawsuit comes nearly eight months after the insurer discovered that a portable computer disk drive with unencrypted information disappeared from Health Net's Shelton office. Although the missing data included protected health information and Social Security and bank account numbers, it took Health Net six months to notify appropriate authorities and the affected enrollees, Blumenthal said. FierceHealthcare