HIPAA Breach News

Email Error Exposed the PHI of 8,000 Members of FirstCare Health Plans

Texas-based First Care Health Plans is notifying more than 8,000 plan members that some of their personal information may have been impermissibly disclosed as a result of automated reports being accidentally emailed to an incorrect recipient.

The daily reports were automatically generated and sent to an email distribution list. The reports contained medical requests which included members’ names, member ID numbers, procedure codes, descriptions of treatments, authorization numbers, and names of treating providers.

On August 15, 2018, the FirstCare IT security team became aware that the reports had been sent to an external email address in error and the emails had not been encrypted. An investigation into the incident revealed the reports had been sent over a period of 17 months, starting on March 22, 2017. The reports contained the protected health information of 8,056 plan members.

FirstCare explained in its breach notice that various security solutions had been deployed to monitor for unauthorized access, acquisition, and unauthorized use of ePHI, but they had failed to identify the misdirected emails.

Upon discovery of the error, the incorrect recipient was removed from the distribution list and a full review was conducted of all other automated reports to ensure similar errors had not been made. FirstCare has now developed a new protocol to ensure the recipients of active reports are regularly monitored and new auditing parameters have been implemented related to change controls.

FirstCare has taken several steps to contact the user of the email account and secure the ePHI. Emails were sent to the account in an attempt to get the user to make contact, but those attempts failed.  FirstCare also engaged the U.S Federal Government to investigate and help identify the owner of the email account to minimize the potential for harm.

“We have not received any indication that the information has been accessed or used by an unauthorized individual,” explained FirstCare in its substitute breach notice. Since it is not possible to confirm whether there has been an impermissible disclosure of ePHI, FirstCare is offering to reimburse all affected patients for one year of credit monitoring services through LifeLock.

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Phishing Attack on Children’s Hospital of Philadelphia Results in Double Account Breach

Children’s Hospital of Philadelphia (CHOP) has discovered the email accounts of two employees have been compromised following successful phishing attacks on August 23 and August 29, 2018.

On August 24, CHOP discovered an unauthorized individual had gained access to the email account of a one of its physicians. The investigation revealed the account was first accessed the previous day. Two weeks later, on September 6, CHOP discovered a second email account had also been compromised. In that case, access to the account was first gained on August 29. In both cases, prompt action was taken to secure the accounts and prevent further access. A leading computer forensics firm was also retained to assist with the investigation and assess the scope of the breach.

An analysis of the email accounts revealed the individual(s) behind the phishing attacks may have been able to gain access to the protected health information (PHI) of a limited number of patients of CHOP’s neonatal and fetal programs. The information that was exposed differs from patient to patient and may have included a full name, birth date, and clinical information related to neonatal/fetal services received at Children’s Hospital of Philadelphia and, in a limited number of cases, the Hospital of the University of Philadelphia. No Social Security numbers or financial information were compromised at any point.

While emails in the account were potentially accessed and ePHI may have been stolen, CHOP has not uncovered any evidence to suggest that patient information has been misused.

Mothers and parents/legal guardians of current and former patients were notified of the breach by mail on October 23, 2018. Affected individuals have been advised to monitor statements from their healthcare providers for any signs of fraudulent activity.

CHOP has not yet disclosed how many individuals have been affected. The phishing incidents have yet to appear on the Department of Health and Human Services’ Office for Civil Rights breach portal.

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September 2018 Healthcare Data Breach Report

For the second consecutive month there has been a reduction in both the number of reported healthcare data breaches and the number of exposed healthcare records. In September, there were 25 breaches of 500 or more records reported to the Department of Health and Human Services’ Office for Civil Rights – the lowest breach tally since February.

Healthcare data breaches April to September

There was also a substantial reduction in the number of exposed/stolen healthcare records in September. Only 134,000 healthcare records were exposed/stolen in September – A 78.5% reduction in compared to August. Fewer records were exposed in September than in any other month in 2018.

Causes of September 2018 Healthcare Data Breaches

In August, hacking/IT incidents dominated the healthcare breach reports, but there was a major increase (55.55%) in unauthorized access/disclosure breaches in September, most of which involved paper records. There were no reported cases of lost paperwork or electronic devices containing ePHI, nor any improper disposal incidents.

September 2018 Healthcare Data Breaches - Causes

While there were fewer hacking/IT incidents than unauthorized access/disclosure incidents in September, they resulted in the exposure of more healthcare records. Six of the top ten healthcare data breaches in September were hacking/IT incidents.

Ten Largest Healthcare Data Breaches in September 2018

Covered Entity Entity Type Records Exposed Breach Type Location of PHI
WellCare Health Plans, Inc. Health Plan 26942 Unauthorized Access/Disclosure Paper/Films
Reliable Respiratory Healthcare Provider 21311 Hacking/IT Incident Email
Toyota Industries North America, Inc. Health Plan 19320 Hacking/IT Incident Email
Independence Blue Cross, LLC Business Associate 16762 Unauthorized Access/Disclosure Other
Ransom Memorial Hospital Healthcare Provider 14329 Hacking/IT Incident Email
Ohio Living Healthcare Provider 6510 Hacking/IT Incident Email
University of Michigan/Michigan Medicine Healthcare Provider 3624 Unauthorized Access/Disclosure Paper/Films
Reichert Prosthetics & Orthotics, LLC Healthcare Provider 3380 Theft Other Portable Electronic Device
J.A. Stokes Ltd. Healthcare Provider 3200 Hacking/IT Incident Desktop Computer, Electronic Medical Record, Network Server
J&J Medical Service Network Inc. Business Associate 2500 Hacking/IT Incident Network Server

Location of Breached Protected Health Information

Over the past few months, email has been the most common location of breached PHI. September also saw a high number of email-related breaches reported – mostly due to phishing attacks – but the highest percentage of breaches involved paper records. There were 9 incidents involving unauthorized access/disclosure of paper records and one theft incident.

Data Breaches by Covered Entity Type

There was a 150% month-over-month rise in health plan data breaches in September, although healthcare providers were the worst affected with 17 healthcare data breaches reported in September 2018. While there were only 3 data breaches reported by business associates of HIPAA-covered entities, a further four breaches had some business associate involvement.

Healthcare Data Breaches by State

Healthcare organizations based in 18 states reported data breaches in September. Texas was the worst affected with four separate healthcare data breaches in September. There were three breaches reported by healthcare providers in Massachusetts and two reported breaches in California and Kansas. One breach was reported in Arizona, Colorado, Florida, Indiana, Michigan, Nebraska, New Jersey, Nevada, New York, Ohio, Oregon, Pennsylvania, Rhode Island, and Wisconsin.

HIPAA Enforcement Actions in September

After two months without any OCR financial penalties, OCR agreed settlements with three hospitals in September to resolve potential HIPAA violations. All three hospitals were alleged to have violated the HIPAA Privacy Rule by allowing an ABC film crew to record footage for the TV show “Boston Med.”

In all cases, OCR determined that patient privacy had been violated by allowing filming to take place without first obtaining patients’ consent. OCR also determined there had been failures to safeguard patients’ protected health information.

Massachusetts General Hospital agreed to a settlement of $515,000, Brigham and Women’s Hospital settled its case with OCR for $384,000, and Boston Medical Center paid OCR $100,000. New York Presbyterian Hospital had already settled its Boston Med-related case with OCR for $2.2 million in 2016.

State attorneys general also enforce HIPAA Rules and can issue fines for HIPAA violations. In September there was one settlement agreed with a state attorney general.  UMass Memorial Health Care paid $230,000 to Massachusetts to resolve alleged HIPAA failures related to two data breaches that exposed the protected health information (PHI) of more than 15,000 state residents. In both cases, employees had accessed and copied PHI without authorization.

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OIG Publishes 2016 Medicaid Data Breach Report

A new report released by the Department of Health and Human Services’ Office of Inspector General (OIG) has revealed the vast majority of Medicaid data breaches are relatively minor and only affect an extremely limited number of individuals.

For the study, OIG assessed all breaches reported by Medicaid agencies and their contractors in 2016. According to the report, the records of 515,000 Medicaid beneficiaries were exposed in 2016, spread across 1,260 data breaches.

Almost two thirds of Medicaid data breaches reported in 2016 affected a single person with a further 29% of breaches affecting between 1 and 9 individuals. Large-scale breaches, which resulted in the data of 500 or more beneficiaries being exposed, accounted for 1% of the annual total.

While the breach causes were highly varied, the majority of incidents were the result of simple errors such as misaddressing a letter, fax, or email. Those breaches only resulted in a very limited amount of PHI being exposed, such as a beneficiary name and Medicaid or other ID number. Out of the 1,260 breaches only 303 resulted in the exposure of a Social Security number and just 23 involved financial information. Hackers may be responsible for a large percentage of healthcare data breaches, but there were only 9 hacking incidents reported in 2016 that resulted in the exposure of Medicaid data.

Image source: HHS Office of Inspector General

OIG explained that previous reviews have concentrated on identifying vulnerabilities in states’ information systems and controls, which could potentially be exploited to gain access to Medicaid systems and data. This review was concerned with the breach response when security incidents occur. An efficient breach response can limit the potential for harm such as identify theft.

In addition to an analysis of Medicaid data breaches, OIG also assessed the breach response policies and procedures in 50 states and the District of Columbia. OIG discovered a common breach reporting framework has been adopted by the majority of U.S. states, which covers investigations of breaches and their scope, the best way to respond to data breaches, how to protect breach victims, and identifying the actions to take to correct vulnerabilities to prevent future security incidents. OIG also assessed the responses to individual breaches in nine states to gain a better understanding of the breach response processes.

OIG noted that the breach response processes varied slightly from state to state, with all meeting the requirements of HIPAA as well as state-specific laws. While all breaches were reported to the HHS’ Office for Civil Rights to meet the requirements of the HIPAA Breach Notification Rule, many states failed to routinely notify the Centers for Medicare & Medicaid Services (CMS) separately, even though the CMS has required states to do so since 2006.

OIG suggests that this was likely due to the introduction of the HIPAA Breach Notification Rule in 2009.

The failure to report Medicaid breaches directly to the CMS hampers the agency’s ability to monitor data security issues nationally. This can make it harder to identify multi-state data breaches and determine when best practices and guidance need to be issued to correct common data security issues.

To correct the problem, OIG has recommended CMS should issue updated guidance for Medicaid agencies and their contractors and detail the circumstances that warrant a separate breach notification to be issued to the CMS.

CMS concurred with the recommendation, although did point out that the reporting requirements had been made clear in a 2006 State Medicaid Director Letter to Medicaid agencies and contractors.

The OIG report can be downloaded on this link (PDF, 2.1MB)

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1.25 Million Records Exposed in Employees Retirement System of Texas Data Breach

The Employees Retirement System of Texas (ERS) has discovered a flaw in its ERS OnLine portal allowed certain individuals to view information of other members after logging into the portal.

ERS explained that a coding error, introduced on January 1, 2018, affected the “Annual Out-of-Pocket Premium” function of its ERS OnLine system. The function is used by some retirees, direct-pay members, employees on leave without pay and COBRA participants. The function “allows participants who pay their Texas Employees Group Benefits Program (GBP) premiums with after-tax dollars to see their own premium payment information.” However, the flaw meant that certain ERS members were displayed information about other members and in some cases, certain beneficiaries – if those beneficiaries had received some form of payment from ERS and had information in the ERS OnLine system.

ERS notes that the coding error only returned other members’ information when individuals performed a modified search via the affected function and therefore it is “very unlikely” than most members information was accessed by other members. Since the function could only be used after logging in, and was only available to a limited group of individuals, the breach was limited in scale. Information was not exposed to the public at any point and its system was not hacked.

As a result of the error, the following information could potentially have been disclosed to other individuals: First and last names, Social Security numbers, and ERS member identification numbers (EmplIDs).

The security issue was discovered by ERS on August 17, 2018 when an ERS member raised the alert after a modified search returned the names, ERS ID numbers, and Social Security numbers of 50 other members. ERS immediately shut down the ERS OnLine system while the flaw was identified and corrected. The system was brought back online rapidly with the flawed search function disabled. ERS notes that the 50 members whose information was accessed were notified promptly.

ERS conducted a thorough investigation of the issue to determine if any other functions were affected, with assistance provided by third-party experts. ERS reports that the flaw was limited to the single function. Further controls on code design and code reviews have now been implemented to prevent any similar errors from resulting in the exposure of sensitive information in the future.

All affected members have been notified by mail and have been automatically enrolled in identity restoration services through Experian, which will be provided for one year without charge.

The security incident has now been reported to the Department of Health and Human Services’ Office for Civil Rights. The breach summary indicates up to 1,248,263 individuals have potentially been affected by the breach.

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Ransomware Attack Impacts 16,000 National Ambulatory Hernia Institute Patients

On September 13, 2018, the National Ambulatory Hernia Institute in California experienced a ransomware attack that resulted in certain files on its network being encrypted.

According to the breach notice uploaded to the healthcare provider’s website, the attackers were potentially able to gain access to demographic data of patients recorded prior to July 19, 2018.

In total, 15,974 patients have had some of their protected health information exposed as a result of the attack. The information potentially accessed by the attackers was limited to names, addresses, birth dates, diagnoses, appointment dates and times, and Social Security numbers. Patients who visited National Ambulatory Hernia Institute facilities for the first time after July 19, 2018 were unaffected by the breach.

Due to the sensitive nature of the exposed information, the National Ambulatory Hernia Institute has advised affected patients to obtain identity monitoring services for a period of at least one year. The breach notice does not state whether those services are being provided to patients free of charge.

The National Ambulatory Hernia Institute explained that all data have now been transferred to an off-site server and additional controls have been purchased and implemented to prevent further attacks, including a more robust firewall and antivirus software solutions. The investigation into the breach is ongoing.

The National Ambulatory Hernia Institute did not state what type of ransomware was used in the attack, only that “the attack was tied to an email address glynnaddey@aol.com.”

That email address has previously been associated with a variant of CrySiS/Dharma ransomware called gamma. Gamma ransomware ransoms are not fixed and are not stated on the ransom demands. Victims must email the attackers to find out how much it will cost for the keys to unlock files. No mention was made about whether the ransom demand was paid to regain access to data.

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$16 Million Anthem HIPAA Breach Settlement Takes OCR HIPAA Penalties Past $100 Million Mark

OCR has announced that an Anthem HIPAA breach settlement has been reached to resolve potential HIPAA violations discovered during the investigation of its colossal 2015 data breach that saw the records of 78.8 million of its members stolen by cybercriminals.

Anthem has agreed to pay OCR $16 million and will undertake a robust corrective action plan to address the compliance issues discovered by OCR during the investigation.

The previous largest ever HIPAA breach settlement was $5.55 million, which was agreed with Advocate Health Care in 2016. “The largest health data breach in U.S. history fully merits the largest HIPAA settlement in history,” said OCR Director Roger Severino.

Anthem Inc., an independent licensee of the Blue Cross and Blue Shield Association, is America’s second largest health insurer. In January 2015, Anthem discovered cybercriminals had breached its defenses and had gained access to its systems and members’ sensitive data. With assistance from cybersecurity firm Mandiant, Anthem determined this was an advanced persistent threat attack – a continuous and targeted cyberattack conducted with the sole purpose of silently stealing sensitive data.

The attackers first gained access to its IT systems on December 2, 2014, with access continuing until January 27, 2015. During that time the attackers stole the data of 78.8 million plan members, including names, addresses, dates of birth, medical identification numbers, employment information, email addresses, and Social Security numbers.

The attackers gained a foothold in its network through spear phishing emails sent to one of its subsidiaries. They were then able to move laterally through its network to gain access to plan members’ data.

Anthem reported the data breach to OCR on March 13, 2015; however, by that time OCR was already a month into a compliance review of Anthem Inc. OCR took prompt action after Anthem uploaded a breach notice to its website and media reports started to appear indicating the colossal scale of the breach.

The OCR investigation uncovered multiple potential violations of HIPAA Rules. Anthem chose to settle the HIPAA violation case with no admission of liability.

OCR’s alleged HIPAA violations were:

  • 45 C.F.R. § 164.308(u)(1)(ii)(A) – A failure to conduct a comprehensive, organization-wide risk analysis to identify potential risks to the confidentiality, integrity, and availability of ePHI.
  • 45 C.F.R. § 164.308(a)(1)(ii)(D) – The failure to implement regularly review records of information system activity.
  • 45 C.F.R. § 164.308 (a)(6)(ii) – Failures relating to the requirement to identify and respond to detections of a security incident leading to a breach.
  • 45 C.F.R. § 164.312(a) – The failure to implement sufficient technical policies and procedures for electronic information systems that maintain ePHI and to only allow authorized persons/software programs to access that ePHI.
  • 45 C.F.R. § 164.502(a) – The failure to prevent the unauthorized accessing of the ePHI of 78.8 million individuals that was maintained in its data warehouse.

“Unfortunately, Anthem failed to implement appropriate measures for detecting hackers who had gained access to their system to harvest passwords and steal people’s private information,” said Roger Severino. “We know that large health care entities are attractive targets for hackers, which is why they are expected to have strong password policies and to monitor and respond to security incidents in a timely fashion or risk enforcement by OCR.”

In addition to the OCR HIPAA settlement, Anthem has also paid damages to victims of the breach. Anthem chose to settle a class action lawsuit filed on behalf of 19.1 million customers whose sensitive information was stolen. Anthem agreed to settle the lawsuit of $115 million.

2018 OCR HIPAA Settlements and Civil Monetary Penalties

Given the size of the Anthem HIPAA settlement it is no surprise that 2018 has seen OCR smash its previous record for financial penalties for HIPAA violations. The latest settlement takes OCR HIPAA penalties past the $100 million mark.

There have not been as many HIPAA penalties in 2018 than 2016(13), although this year has seen $1.4 million more raised in penalties than the previous record year and there are still 10 weeks left of 2018. The total is likely to rise further still.

OCR Financial Penalties for HIPAA Violations (2008-2018)

Year Settlements and CMPs Total Fines
2018 1 $24,947,000
2017 1 $19,393,000
2016 2 $23,505,300
2015 3 $6,193,400
2014 5 $7,940,220
2013 5 $3,740,780
2012 6 $4,850,000
2011 6 $6,165,500
2010 13 $1,035,000
2009 10 $2,250,000
2008 7 $100,000
Total 59 $100,120,200

 

HIPAA Fines and CMPs

Largest Ever Penalties for HIPAA Violations

Year Covered Entity Amount Settlement/CMP
2018 Anthem Inc $16,000,000 Settlement
2016 Advocate Health Care Network $5,550,000 Settlement
2017 Memorial Healthcare System $5,500,000 Settlement
2014 New York and Presbyterian Hospital and Columbia University $4,800,000 Settlement
2018 University of Texas MD Anderson Cancer Center $4,34,8000 Civil Monetary Penalty
2011 Cignet Health of Prince George’s County $4,300,000 Civil Monetary Penalty
2016 Feinstein Institute for Medical Research $3,900,000 Settlement
2018 Fresenius Medical Care North America $3,500,000 Settlement
2015 Triple S Management Corporation $3,500,000 Settlement
2017 Children’s Medical Center of Dallas $3,200,000 Civil Monetary Penalty

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Email Accounts Compromised at Biomarin Pharmaceutical and Envision Healthcare Corporation

Novato, CA-based Biomarin Pharmaceutical has discovered two employee email accounts have been compromised as a result of a phishing attack in which a temporary employee’s login credentials were obtained by the attacker.

The attack was discovered on June 21, 2018 and immediate action was taken to prevent further unauthorized account access. The investigation into the breach determined that the email accounts had been accessed by an unauthorized individual, but it was not possible to tell whether any emails were opened or copied by the attacker.

An analysis of the compromised accounts suggests a document containing names, health insurance information and Social Security numbers may have been in one or both email accounts at the time the breach.

Due to the nature of exposed data, affected individuals have been advised to place a fraud alert on their credit files as a precaution against identity theft and fraud and urged to monitor explanation of benefits statements from insurers for medical services which have not been received.

Biomarin Pharmaceutical has now secured its network and has taken steps to prevent further email account breaches.

Envision Healthcare Corporation Email Accounts Compromised

Portland, OR-based Envision Healthcare Corporation is notifying current and former providers, affiliates, and job applicants that some of their personal information may have been compromised. The information was contained in email accounts which have recently found to have been accessed by an unauthorized individual.

The email accounts were accessed by a third party in July 2018 and contained information such as names, birth dates, Social Security numbers, driver’s license numbers and financial information. To data, no evidence has been uncovered to suggest any information has been stolen and misused, although as a precaution against identity theft and fraud, affected individuals have been offered complimentary identity theft and credit monitoring services through Experian IdentityWorks’ Credit 3B service.

Envision Healthcare Corporation has already taken steps to secure its systems and is evaluating the implementation of multi-factor authentication.

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Minnesota DHS Notifies 21,000 Patients That Their PHI Has Potentially Been Compromised

This week, the Minnesota Department of Human Services has mailed letters to approximately 21,000 individuals on medical assistance to alert them to a possible breach of their protected health information (PHI) due to two recent phishing campaigns.

Two DHS employees’ email accounts have been confirmed as having been compromised as a result of the employees clicking on links in phishing emails. The investigation into the breach determined that the attackers accessed both email accounts although it was not possible to determine which, if any, emails in the account had been accessed or copied by the attackers.

Minnesota DHS has reason to believe that other employees may also have been targeted and could also have clicked on links in phishing emails, but it has not yet been confirmed whether their accounts have been breached. The investigation into the phishing attacks is ongoing.

The two email account breaches occurred on June 28 and July 9, 2018, although the IT department only determined that the accounts had been breached in August. Upon discovery of the phishing attack, both accounts were secured to prevent further access.

It has taken a considerable amount of time to conduct the investigation and determine which patients have been affected. That process required every single email in each account to be checked for patient information, hence the delay in issuing breach notification letters.

Most of the individuals affected by the breach had previously interacted with the State Medical Review Team, although some individuals who had received services from Minnesota DHS Direct Care and Treatment facilities also had some of their PHI exposed.

The PHI in the compromised email accounts included full names, addresses, telephone numbers, birth dates, Social Security numbers, educational records, medical information, employment information, and financial information.

“We immediately took steps to secure these accounts, and currently have no evidence that any information was actually viewed, downloaded or misused,” explained Minnesota DHS in a statement about the breach. “We take data privacy very seriously at DHS, and continue to work with our employees and partners to prevent cyberattacks.”

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