Latest HIPAA News

Washington Health System Suspends Several Employees for Inappropriate PHI Access

Following the alleged inappropriate accessing of patient health records by employees, Washington Health System has taken the decision to suspend several employees while the privacy breach is investigated.

While it has not been confirmed how many employees have been suspended, Washington Health System VP of strategy and clinical services, Larry Pantuso, issued a statement to the Observer Reporter indicating around a dozen employees have been suspended, although at this stage, no employees have been fired for inappropriate medical record access.

The privacy breaches are believed to relate to the death of an employee of the WHS Neighbor Health Center. Kimberly Dollard, 57, was killed when an out of control car driven by Chad Spence, 43, rammed into the building where she worked. Spence and one other individual were admitted to the hospital after sustaining injuries in the accident.

Pantuso did not confirm that this was the incident that prompted the employees to access patients’ medical records, although he did confirm that the alleged inappropriate access related to a “high profile case.”

The accessing of medical records without any legitimate work reason for doing so is a violation of the Health Insurance Portability and Accountability Act (HIPAA). HIPAA only permits the accessing of PHI by employees for treatment, payment, or healthcare operations.

Any healthcare employee discovered to have violated HIPAA Rules faces disciplinary action which can involve suspension, termination, loss of license and, potentially, criminal charges.

There have been several recent cases where employees have been fired snooping on the medical records of high profile patients.

In February 2018, 13 employees of the Medical University of South Carolina were fired for HIPAA violations after they accessed the medical records of patients without authorization, many of whom accessed the medical records of high profile patients.

One of the most recent actions taken against a healthcare employee for a HIPAA violation was taken by the New York nursing board’s Office for Professional Discipline. Martha Smith-Lightfoot was provided with a list of patients prior to leaving her employment at University of Rochester Medical Center (URMC) to take up a new position at Greater Rochester Neurology. Smith-Lightfoot provided that list to her new employer and patients were contacted in an attempt to solicit business.

Smith-Lightfoot signed a consent order with the nursing board admitting the violation and had her license to practice suspended for one year, received a stayed suspension for another year, and three years of probation when she returns to practice.

Snooping on medical records is likely to be discovered as logs are created when health records are accessed. Those logs are periodically checked and if inappropriate PHI access is discovered it is likely to result in termination and will make it hard to obtain future employment in healthcare.

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270,000 Patients Potentially Affected by Med Associates Hacking Incident

The Latham, NY-based health billing company Med Associates, which provides claims services to more than 70 healthcare providers, has discovered an employee’s computer has been accessed by an unauthorized individual. It is possible that the attacker gained access to the protected health information of up to 270,000 patients through the compromised device.

Unusual activity was identified on an employee’s computer on March 22, 2018, prompting an investigation by the IT department. Further investigation by a third-party computer forensics firm confirmed that the computer had been remotely accessed by an unauthorized individual.

The investigation confirmed that the breach occurred on the same day that the unusual activity was detected. Upon learning of the breach, access to the computer was terminated.

Med Associates and the computer forensics firm did not uncover any evidence to suggest that any information accessible through the computer was accessed by the hacker and neither have any reports been received to suggest any PHI has been misused. All patients impacted by the breach have now been notified and have been offered one year of credit monitoring and identity theft protection services without charge.

The majority of individuals impacted by the breach reside in the Capital Region, although approximately 1,700 individuals in Massachusetts, Florida, and Vermont have also been affected.

Most of the patients affected, the breach was limited to names, addresses, dates of birth, health insurance information, dates of service, and diagnosis and procedure codes, although a small number of Social Security numbers were also accessible through the computer.

According to TimesUnion, Med Associates sent a breach report to the Department of Health and Human Services’ Office for Civil Rights on June 14, 2018.

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May 2018 Healthcare Data Breach Report

April was a particularly bad month for healthcare data breaches with 41 reported incidents. While it is certainly good news that there has been a month-over-month reduction in healthcare data breaches, the severity of some of the breaches reported last month puts May on a par with April.

Healthcare Data Breaches (May 2018)

There were 29 healthcare data breaches reported by healthcare providers, health plans, and business associates of covered entities in May – a 29.27% month-over month reduction in reported breaches. However, 838,587 healthcare records were exposed or stolen in those incidents – only 56,287 records fewer than the 41 incidents in April.

Healthcare Data Breaches - Records (May 2018)

In May, the mean breach size was 28,917 records and the median was 2,793 records. In April the mean breach size was 21,826 records and the median was 2,553 records.

Causes of May 2018 Healthcare Data Breaches

Unauthorized access/disclosure incidents were the most numerous type of breach in May 2018 with 15 reported incidents (51.72%). There were 12 hacking/IT incidents reported (41.38%) and two theft incidents (6.9%). There were no lost unencrypted electronic devices reported in May and no improper disposal incidents.

The 12 hacking/IT incidents reported in May resulted in the exposure/theft of 738,883 healthcare records – 88.11% of the total for May. Unauthorized access/disclosure incidents affected 97,439 patients and health plan members – 11.62% of the total. Theft incidents resulted in unauthorized individuals obtaining the PHI of 2,265 individuals – 0.27% of the monthly total.

Causes of Healthcare Data Breaches (May 2018)

Largest Healthcare Data Breaches Reported in May 2018

The largest healthcare data breach reported in May 2018 – by some distance – was the 538,127-record breach at the Baltimore, MD-based healthcare provider LifeBridge Health Inc. The breach was reported in May, although it occurred more than a year and a half earlier in September 2016, when malware was installed on its server that hosts electronic health records.

In addition to names and contact information, clinical and treatment information, insurance information, and, in some instances, Social Security numbers, were compromised. The scale of the breach and the types of information exposed makes it one of the most serious healthcare data breaches discovered in 2018.

As the table below shows, hacks and IT incidents were behind the most serious breaches in May.

Breached Entity Entity Type Records Breached Breach Type
LifeBridge Health, Inc Healthcare Provider 538127 Hacking/IT Incident
The Oregon Clinic, P.C. Healthcare Provider 64487 Hacking/IT Incident
Dignity Health Healthcare Provider 55947 Unauthorized Access/Disclosure
Aultman Hospital Healthcare Provider 42625 Hacking/IT Incident
Holland Eye Surgery and Laser Center Healthcare Provider 42200 Hacking/IT Incident
USACS Management Group, Ltd. Business Associate 15552 Hacking/IT Incident
Florida Hospital Healthcare Provider 12724 Hacking/IT Incident
Aflac Health Plan 10396 Hacking/IT Incident
Cerebral Palsy Research Foundation of Kansas, Inc. Healthcare Provider 8300 Unauthorized Access/Disclosure
Associates in Psychiatry and Psychology Healthcare Provider 6546 Hacking/IT Incident


Records Exposed in Healthcare Data Breaches (May 2018)

Location of Breached Protected Health Information

In May, the most common location of breached protected health information was email. 11 of the 29 reported breaches involved hacks of email accounts and misdirected emails. It was a similar story in April, when email was also the main location of breached PHI.

In May there were 7 incidents affecting network servers – hacks, malware infections, and ransomware incidents – and 7 incidents involving paper records.

Healthcare Data Breaches (May 2018) - Location of Breached PHI

Data Breaches by Covered Entity Type

Healthcare providers experienced the lion’s share of the healthcare data breaches in May 2018, with 22 incidents reported. Only two health plans suffered a data breach in May.

Five business associates of HIPAA-covered entities reported a breach, although a further four breaches had some business associate involvement.

Healthcare Data Breaches (May 2018) - Breaches by Covered Entity Type

Healthcare Data Breaches by State

California and Ohio were the worst affected by healthcare data breaches in May 2018, with each state having four breaches. Oregon and Texas each experienced two data breaches in May. Nevada saw four breaches reported, but three of those were the same incident, only reported separately by each of the three Dignity Health hospitals affected.

One healthcare data breach was reported by a HIPAA-covered entity or business associate based in Arkansas, Arizona, Colorado, Florida, Georgia, Indiana, Kansas, Massachusetts, Maryland, Michigan, Minnesota, Nebraska, and New York.

Financial Penalties for HIPAA Violations

While OCR and state attorneys general continue to enforce HIPAA Rules and take action against covered entities and business associates for noncompliance, there were no financial settlements announced by either in May 2018.

Data Source: The Department of Health and Human Services’ Office for Civil Rights.

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OCR Announces $4.3 Million Civil Monetary Penalty for University of Texas MD Anderson Cancer Center

The Department of Health and Human Services’ Office for Civil Rights has announced its fourth largest HIPAA violation penalty has been issued to The University of Texas MD Anderson Cancer Center (MD Anderson). MD Anderson has been ordered to pay $4,348,000 in civil monetary penalties to resolve the HIPAA violations related to three data breaches experienced in 2012 and 2013.

MD Anderson is an academic institution and a cancer treatment and research center based at the Texas Medical Center in Houston, TX. Following the submission of three breach reports in 2012 and 2013, OCR launched an investigation to determine whether the breaches were caused as a result of MD Anderson having failed to comply with HIPAA Rules.

The breaches in question were the theft of an unencrypted laptop computer from the home of an MD Anderson employee and the loss of two unencrypted USB thumb drives, each of which contained the electronic protected health information (ePHI) of its patients. In total, the PHI of 34,883 patients was exposed and could potentially have been viewed by unauthorized individuals.

The investigation revealed that MD Anderson had conducted a risk analysis, as is required by HIPAA. That risk analysis revealed the use of unencrypted devices posed a serious threat to the confidentiality, integrity, and availability of ePHI. To address the risk, in 2006 MD Anderson developed policies that required all portable storage devices to be encrypted.

However, even though policies called for the use of encryption, encryption was not implemented until March 24, 2011. When encryption was implemented, it was not implemented on all portable devices in its inventory. MD Anderson reported to OCR that by January 25, 2013, it had only encrypted 98% of its computers. If MD Anderson had implemented encryption on all portable electronic devices containing ePHI, the three breaches would have been prevented.

Preventable Data Breaches Experienced by MD Anderson

The laptop was stolen from the home of Dr. Randall Millikan on April 30, 2012. Dr. Millikan confirmed that the ePHI on the device were not encrypted, the laptop was not password protected, and the ePHI could potentially have been viewed by family members at his home as a result, as well as by the individual who stole the laptop.

The USB devices were lost on or around July 12, 2012 and December 2, 2013. The first contained an Excel file containing the ePHI of 2,264 individuals. The device was lost by a summer intern on her way home from work. The second USB drive was lost by a visiting researcher from Brazil at some point over the Thanksgiving weekend. The device was usually left in the tray on her desk. Neither device was encrypted or password protected.

Between 2010 and 2011, MD Anderson’s Information Security Program and Annual Reports stated clearly that the storage of ePHI on mobile media was a key risk area that had not yet been mitigated, which was also detailed in its risk analysis for fiscal year 2011. That risk analysis determined that employees were downloading ePHI onto portable storage devices for use outside the institution. The failure to address the risk was a violation of 45 C.F.R. § 164.312(a)(2)(iv) and its own policies.

Penalties for HIPAA Violations

When financial penalties are deemed appropriate, OCR usually negotiates with the covered entity and a settlement is agreed; however, MD Anderson disagreed with OCR’s decision and maintained the financial penalty was unreasonable. Specifically, MD Anderson claimed that it was not obligated to use encryption as the data on the devices were used for research purposes, and that the research was not subject to HIPAA’s nondisclosure requirements. A covered entity has the right to contest penalties for HIPAA violations. Consequently, the matter was referred to an Administrative Law Judge.

OCR proposed penalties for HIPAA violations under the tier of ‘reasonable cause’. OCR wrote in its Notice of Proposed Determination, “Reasonable cause is “an act or omission in which a covered entity or business associate knew, or by exercising reasonable diligence would have known, that the act or omission violated an administrative simplification provision, but in which the covered entity or business associate did not act with willful neglect.”

The penalty amounts in such cases are a minimum of $1,000 for each violation up to a maximum of $1.5 million per calendar year.


Penalty Structure for HIPAA Violations

OCR determined penalties were appropriate for calendar year 2011 (283 days from March 24 to December 31), calendar year 2012 (366 days from January 1 to December 31) and calendar year 2013 (25 days from January 1 to January 25), and applied the maximum penalty of $1.5 million for each of those calendar years.

Administrative Law Judge Steven T. Kessell granted summary judgement in favor of OCR to remedy MD Anderson’s noncompliance with 45 C.F.R. § 164.312(a) – Technical Safeguards; encryption – and 45 C.F.R. § 164.502(a) – Uses and Disclosure of PHI; impermissible disclosure of ePHI.

“OCR is serious about protecting health information privacy and will pursue litigation, if necessary, to hold entities responsible for HIPAA violations,” said OCR Director Roger Severino. “We are pleased that the judge upheld our imposition of penalties because it underscores the risks entities take if they fail to implement effective safeguards, such as data encryption, when required to protect sensitive patient information.”

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OCR Issues Guidance on Individual Authorization of Uses and Disclosures of PHI for Research

The Department of Health and Human Services’ Office for Civil Rights has issued new guidance for HIPAA-covered entities to streamline HIPAA authorizations for uses of protected health information for research purposes, as required by the 21st Century Cures Act of 2016.

Uses and Disclosure of PHI for Research

The HIPAA Privacy Rule does permit covered entities to use patients’ PHI for research without obtaining individual authorizations under certain circumstances, such as if documented Institutional Review Board (IRB) or Privacy Board Approval has been obtained – see 45 CFR § 164.512(i)(1)(i) and (ii). However, in most cases, prior to using patients’ PHI for research, individual authorizations must be obtained from patients in writing. Without a valid authorization from a patient, their PHI can only be used or disclosed for purposes permitted by the Privacy Rule.

The new guidance explains the content that must be included in individual authorizations to meet HIPAA requirements.

OCR explains that individual authorizations must:

  • Be written in plain language to ensure they can be easily understood;
  • Include, in a specific and meaningful fashion, a description of the information that will be used and disclosed;
  • Include the names of the persons authorized to disclose and receive the information;
  • A description of the purpose of the requested use or disclosure, and;
  • An expiration date or expiration event after which the authorization will be invalid.

In addition, the individual authorization must make clear the following rights of the individual:

  • The right to revoke authorization in writing and any exceptions to that right;
  • Details of how that right can be exercised;
  • The ability or inability to condition treatment, payment, enrollment, or eligibility for benefits on the authorization, and;
  • The potential for information disclosed in accordance with the authorization to be redisclosed by the recipient and no longer be protected by the HIPAA Privacy Rule.

There has been some confusion about the content of individual authorizations with respect to future research, which may not have been determined at the time that the authorization is obtained. In such situations, the requirement to describe ‘each purpose’ that PHI will be used or disclosed may not be possible.

OCR has clarified that in such situations, specific future uses do not need to be described. Instead, to comply with 45 CFR § 164.508(c)(1)(iv) “the authorization must adequately describe such purposes such that it would be reasonable for the individual to expect that his or her protected health information could be used or disclosed for such future research.”

OCR also clarifies the requirement to include “an expiration date or an expiration event that relates to the individual or the purpose of the use or disclosure,” and explains it is sufficient “to state ‘end of the research study,’ ‘none,’ or similar language,” such as when the PHI will be included in the creation and maintenance of a research database or study repository. It is also permitted to state, “the authorization will remain valid unless and until it is revoked by the individual.”

While patients are given the right to revoke an authorization in writing at any time, there will be situations when exercising that right will not stop the individual’s PHI from being used in a particular research study. Patients should be made aware of this when giving their authorization.

“A covered entity may continue to use and disclose PHI that was obtained before the individual revoked authorization to the extent that the entity has taken action in reliance on the authorization,” explains OCR. “In cases where the research is conducted by the covered entity, the exception to revocation would permit the covered entity to continue using or disclosing the PHI to the extent necessary to maintain the integrity of the research —for example, to account for a subject’s withdrawal from the research study, to conduct investigations of scientific misconduct, or to report adverse events.”

OCR explains that it is not necessary for periodic reminders about the right to revoke authorization to be sent to patients as patients must be provided with a copy of the signed authorization in which their rights will be explained. However, covered entities are encouraged to implement procedures for revocation of authorizations such as creating a standard revocation form or adding current authorizations to a patient portal and allowing revocations to be submitted through that portal.

OCR’s Guidance on Individual Authorization of Uses and Disclosures of PHI for Research can be downloaded on this link (PDF).

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More than 90% of Hospitals and Physicians Say Mobile Technology is Improving Patient Safety and Outcomes

90% of hospitals and 94% of physicians have adopted mobile technology and say it is helping to improve patient safety and outcomes, according to a recent survey conducted by Black Book Research.

The survey was conduced on 770 hospital-based users and 1,279 physician practices between Q4, 2017 and Q1, 2018.

The survey revealed 96% of hospitals are planning on investing in a new clinical communications platform this year or have already adopted a new, comprehensive communications platform.

85% of surveyed hospitals and 83% of physician practices have already adopted a secure communication platform to improve communications between care teams, patients, and their families. Secure text messaging platform are fast becoming the number one choice due to the convenience of text messages, the security offered by the platforms, and the improvements they make to productivity and profitability.

98% of hospitals and 77% of physician practices said they have implemented secure, encrypted email and are using intrusion detection systems to ensure breaches are detected rapidly.

Many providers of secure text messaging solutions have developed their platforms specifically for the healthcare industry. The platforms incorporate all the necessary safeguards to meet HIPAA requirements and ensure PHI can be transmitted safely and securely. Text messaging is familiar to almost all employees who are provided access to the platforms and they make communication quick and easy.

However, 63% of respondents to the survey said they are still facing ongoing challenges with buy-in of general mobile adoption strategies and related enterprise technology execution.

30% of respondents said that even though secure methods of communication have been implemented such as encrypted text messaging platforms and secure email, they are still receiving communications on a daily basis from unsecured sources that contain personally identifiable information such as patients’ names and birthdates.

Part of the study involved an assessment of cybersecurity and privacy software and services, allowing the company to identify the vendors that are most highly regarded by customers. TigerText, the market leading provider of secure text messaging solutions for the healthcare industry, was rated highly across the board, as were Vocera, Spok, Doc Halo, and Imprivata.

Doc Halo was the highest rated secure communications platform provider among physician organizations, with Perfect Serve, Patient Safe Solutions, OnPage, Telemediq, and Voalte also scoring highly. Spok ranked highest among hospital systems and inpatient organizations, with Qlik and Cerner also receiving high marks.

“Stakeholders across the healthcare industry are in the quest of finding solutions to use comprehensive real-time data and connectivity cleverly to advance patient safety, productivity and profitability,” Doug Brown, president of Black Book Market Research. “Organizations are adopting secure text messaging platforms because texts are convenient, as well.”

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Colorado Governor Signs Data Protection Bill into Law

Colorado Governor John Hickenlooper has signed a bill – HB 1128 – into law that strengthens protections for consumer data in the state of Colorado. The bipartisan bill, sponsored by Reps. Cole Wist (R) and Jeff Bridges (D) and Sens. Kent Lambert (R) and Lois Court (D), was unanimously passed by the Legislature. The bill will take effect from September 1, 2018.

The bill requires organizations operating in the state of Colorado to implement reasonable security measures and practices to ensure the personal identifying information (PII) of state residents is protected. The bill also reduces the time for notifying the state attorney general about breaches of PII and introduces new rules for disposing of PII when it is no longer required.

Personal information is classed as first name and last name or first initial and last name in combination with any of the following data elements (when not encrypted, redacted, or secured by another means that renders the information unreadable):

  • Social Security number
  • Student ID number
  • Military ID number
  • Passport number
  • Driver’s license number or ID card number
  • Medical information
  • Health insurance ID number
  • Biometric data
  • Email addresses in combination with passwords or security Q&As
  • Financial account numbers, and credit cards and debit cards with associated security codes that would permit access/use

Reasonable Security Measures Must be Implemented

Covered entities will be required to implement and maintain “Reasonable security procedures and practices that are appropriate to the nature of the personal identifying information and the nature and size of the business and its operations.” Those measures should protect PII from unauthorized access, modification, disclosure, and destruction. In cases where PII is passed to a third party, the covered entity must ensure the third party also has reasonable security measures in place.

A written policy must be developed by all businesses that maintain the personal information of Colorado residents covering the disposal of that information when it is no longer required. Electronic data and physical documents containing PII must be disposed of securely. The bill suggests “Shredding, erasing, or otherwise modifying the personal identifying information in the paper or electronic documents to make the personal identifying information unreadable or indecipherable through any means.”

30-Day Maximum Time Limit for Issuing Breach Notifications

When the bill was first introduced, it required the state attorney general to be notified of a breach of PII within 7 days of discovery. Such a short time frame for issuing notifications can help to ensure prompt action is taken to prevent harm or loss, although such a short time frame means notifications would need to be issued before it would be possible, in many cases, to determine whether there had been any misuse of data. This requirement of the bill attracted considerable criticism from large businesses operating in Colorado.

After careful consideration, this requirement was amended and the time limit for issuing notifications has been extended to 30 days following the discovery of the breach. Even so, this makes the notification requirements the strictest of any state.  The state attorney general only needs to be notified of the breach if it has impacted more than 500 Colorado residents. Regardless of the scale of the breach, affected individuals must be notified within 30 days.

HIPAA-covered entities should note that the 30-day time limit will apply even though HIPAA allows up to 60 days to issue notifications. HIPAA-covered entities and entities covered by the Gramm-Leach-Bliley Act are not exempt.

Breach notices are required for any security breach that exposes personal information, except a good faith acquisition of personal information by an employee or agent of a covered entity if the information is not used for a purpose unrelated to the lawful operation of the business and if that information is not subject to further unauthorized disclosure.

A notice must also be placed on the website of the breached entity and a notification issued to statewide media.

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Could Law Firms Targeting Patients in ER Rooms Using Geofencing Technology Violate HIPAA?

Questions are being raised about whether HIPAA Rules are being violated when attorneys send text messages and push notifications to patients who have visited emergency rooms and other medical facilities using geofencing technology.

Marketers are using a range of clever tactics to sell products and services such as remarketing – The displaying of advertisements on websites to individuals who have previously viewed products on another website but not made a purchase.

Similarly, the use of geofencing is growing in popularity. Geofencing is the creation of a digital fence around a specific location. When an individual crosses that invisible boundary, a push notification is sent to the users mobile phone. That location could be a store or any location. Retailers have been using the technology for some time, Google sends push notifications based on location, and now attorneys are getting in on the act.

This tactic of targeting specific individuals is being offered by at least one digital marketing firm and the service is being offered to attorneys. In this case the geofence is around healthcare facilities, specifically emergency rooms. When an individual enters the ER, they are sent a push notification through their phone offering them legal assistance.

NPR reports that Tell All Digital, a New York marketing firm, has been offering this service to law firms and there is no shortage of takers. It is one of the biggest growth areas for the firm and lawyers from several states are trialling the marketing tactic.

The benefits to attorneys are clear. The technology allows the attorney to be virtually in an Emergency Room or healthcare facility targeting individuals who have more than likely been injured. They are sent advertisements about the option of making a personal injury claim. While only a percentage of patients will have a valid claim, it certainly improves the odds of finding a prospective client.

As with remarketing, an individual can be targeted with adverts for a set period after the visit. Potentially ads or messages could be received for up to a month after a visit to an emergency room, according to the NPR report.

While it is certainly an innovative way for attorneys to find clients that have a higher than average chance of qualifying for a personal injury claim, many view this as an invasion of privacy. But could this also constitute a violation of HIPAA?

HIPAA Rules apply to healthcare providers, health plans, healthcare clearinghouses and business associates of HIPAA covered entities. While attorneys can certainly be business associates, HIPAA Rules would be unlikely to apply in this case.

HIPAA covered entities are not supplying any protected health information, the only information that is being supplied is the fact that an individual is in a medical facility, and that information is not passed over by any healthcare company.

While this tactic may not be a violation of HIPAA Rules, it could certainly violate state laws or federal laws other than HIPAA. NPR cites a settlement that was reached last year over similar tactics used by an advertising company to target women who had visited reproductive healthcare facilities. In that case, Copley Advertising set geofences around reproductive health centers and methadone clinics. They were sent messages such as ‘Pregnancy Help’, ‘You Have Choices’, and ‘You Are Not Alone’, with the clients including a Christian pregnancy counselling and adoption agency.

Massachusetts’ attorney general Maura Healey took action and reached a settlement with the advertising agency over potential violations of state consumer protection laws, which the use of geofencing allegedly violated. Under the settlement, Copley was prohibited from using geofencing technology in the state of Massachusetts at or near healthcare facilities to infer the health status or medical conditions of individuals. Healey claimed the actions were tantamount to digital harassment.

Whether the practice violates state laws is open to interpretation, although as the practice appears to be gaining momentum, regulators may have to step in, certainly with respect to visits to healthcare facilities.

While this may not be a matter for the HHS to deal with, it could be dealt with at the state level or it is possible this is more in the realm of the Federal Trade Commission. However, whether the practice actually violates any laws is unclear. What is clear is that unless action is taken, the practice will continue, and its popularity will likely grow.

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Aetna Files Further Lawsuit in an Attempt to Recover Costs from 2017 HIV Status Privacy Breach

There have been further developments in the ongoing legal battles over a 2017 privacy breach experienced by Aetna involving the exposure of patients’ sensitive health information. A further lawsuit has been filed by the insurer in an attempt to recover the costs incurred as a result of the breach.

Ongoing Legal Battles Over the Exposure of Patients’ HIV Statuses

In 2017, the health insurer Aetna experienced a data breach that saw highly sensitive patient information impermissibly disclosed to other individuals. A mailing vendor sent letters to patients using envelopes with clear plastic windows and information about HIV medications were allegedly visible. The mailings related to HIV medications used to treat patients who had already contracted HIV and individuals who were taking drugs as pre-exposure prophylaxis. Approximately 12,000 patients received the mailing.

Lawsuits were filed on behalf of patients whose HIV positive status was impermissibly disclosed, which were settled in January for $17.2 million. A settlement was agreed with the New York state attorney general for a further $1.15 million to resolve the privacy violations.

Following on from those settlements, Aetna attempted to recover the cost of the settlements from Kurtzman Carson Consultants, the administrator who allegedly directed the mailing vendor to send the letters to patients that exposed their PHI. Aetna maintains that Kurtzman Carson Consultants did not communicate to Aetna that the mailing was being sent using windowed envelopes. The lawsuit is ongoing.

Further Lawsuit Filed Against Two Firms Representing Breach Victims

Now a lawsuit has been filed by Aetna against the law firm Whatley Kallas and the Californian advocacy group Consumer Watchdog in an attempt to recover at least part of the $20 million in settlements already paid. Consumer Watchdog and Whatley Kallas represented patients in a previous case that led to the sending of the notification letters that exposed patients’ sensitive information.

The privacy breach that led to the $20 million settlement occurred in response to a previous privacy incident that Aetna was sued over. That initial privacy breach related to a requirement for patients who had been prescribed HIV medication to receive the drugs by mail rather than collecting them in person. Since the drugs need to be kept refrigerated, and are dispatched in refrigerated containers, it was alleged that this would violate patients’ privacy as it would be clear to neighbors and co-workers that HIV drugs were being delivered.

The latest lawsuit alleges the plaintiffs were responsible for requiring Aetna to send sensitive information to the Kurtzman Carson Consultants, which Aetna was against and that after that information was passed to Kurtzman Carson Consultants, the plaintiffs failed to ensure the confidential information was protected.

Whatley Kallas had recommended using Kurtzman Carson Consultants and Consumer Watchdog were involved to make sure Aetna made good on its promise to change the requirements for patients to have the drugs sent by mail.

Harvey Rosenfield and Jerry Flanagan of Consumer Watchdog explained to Reuters, that they “edited the text of the letter to make sure we held Aetna’s feet to the fire,” but did not receive any protected health information and were not aware that windowed envelopes were being used and maintain Aetna is making “frivolous claims.”

“If Aetna believes that an attack on lawyers for Consumer Watchdog and Whatley Kallas LLP will be a cost-free exercise in retaliation, it is deeply mistaken,” wrote Rosenfield and Flanagan in a letter to the insurer, concluding “Aetna would be well advised to focus on remediation of its privacy practices on a nationwide basis as we are seeking in this action, instead of pursuing abusive and retaliatory tactics that seek to evade liability for its own failings and suggest that Aetna still does not take responsibility for ensuring that its customers’ private medical information is protected.”

While this may appear to be a case of passing the buck at face value, the case is not as frivolous as it may sound. According to Aetna, the law firm representing the plaintiffs in the original case were allegedly party to a proposal that stated windowed envelopes were going to be used, but the law firm failed to raise a red flag.

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