Latest HIPAA News

OCR Settles First HIPAA Violation Case Under 2019 Right of Access Initiative

Posted by HIPAA Journal

Earlier this year, the Department of Health and Human Services’ Office for Civil Rights (OCR) announced that one of the main areas of HIPAA enforcement in 2019 would be HIPAA right of access failures, including untimely responses to access requests and overcharging for copies of medical records.

The HIPAA right of access allows patients to obtain copies of their medical records on request. HIPAA-covered entities are required to honor those requests and provide patients with access to PHI or copies of health data contained in a ‘designated record set’ within 30 days of the request being received. A covered entity is permitted to charge a reasonable, cost-based fee for providing a copy of the individual’s PHI, which can include the cost of certain labor, supplies and postage.

HIPAA-covered entities that fail to provide copies of records in a reasonable time frame or charge excessive amounts for providing a copy of a patient’s PHI are in violation of the HIPAA Privacy Rule – See 45 CFR 164.501. Such violations can attract a sizable financial penalty.

This week, OCR has announced that the first settlement has been reached with a HIPAA-covered entity under the right of access initiative. Bayfront Health St. Petersburg, a 480-bed hospital in St. Petersburg, FL, has agreed to pay OCR $85,000 to settle the case.

OCR launched an investigation into a potential HIPAA violation at Bayfront Health following receipt of a complaint from a patient on August 14, 2018. The patient alleged that she had requested her fetal heart monitor records from Bayfront Health St. Petersburg in October 2017. At the time of the complaint, 9 months after the request was made, she had still not been provided with a full copy of her records.

OCR confirmed that the patient made the request on October 18, 2017 and was informed by Bayfront Health that the records could not be found. Two further requests were sent to Bayfront Health by the patient’s counsel on January 2, 2018 and February 12, 2018. In March 2018, Bayfront Health provided an incomplete set of records and a complete response was only received on August 23, 2018. The patient’s counsel shared the records with the patient, but it took the intervention of OCR for the fetal heart monitor records to be provided to the patient. Those records were provided directly to the patient on February 7, 2019.

OCR determined that the failure to provide access to the patient’s designated record set was a clear violation of 45 C.F.R. § 164.524 and that the HIPAA violation warranted a sizable financial penalty.

“Providing patients with their health information not only lowers costs and leads to better health outcomes, it’s the law,” said OCR Director Roger Severino.  “We aim to hold the health care industry accountable for ignoring peoples’ rights to access their medical records and those of their kids.”

In addition to the financial penalty, Bayfront Health has agreed to implement a corrective action plan and will be monitored by OCR for the following 12 months.

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Study Confirms Why Prompt Data Breach Notifications Are So Important

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When healthcare organizations experience a data breach it is understandable that breach victims will be upset and angry. Information is provided to healthcare organizations in the understanding that safeguards have been implemented to keep that information private and confidential.

When patients and health plan members learn that their sensitive, private information has been exposed or stolen, many choose to take their business elsewhere.

According to a new study* by the credit reporting agency Experian, if the breach response is properly managed and the breached entity is transparent and issues notifications promptly, customer churn rate can be kept to an absolute minimum.

The Health Insurance Portability and Accountability Act’s (HIPAA) Breach Notification Rule requires notifications to be issued to breach victims ‘without unreasonable delay’ and no later than 60 days from the discovery of the breach. However, a majority of patients expect to be notified much more quickly. The study showed 73% of patients/plan members expect to be notified about a breach within 24 hours of the breach being discovered.

Prompt data breach notifications can make a big difference. Patients and plan members are likely to be much more forgiving if they are informed about a data breach promptly. 90% of respondents said they would be somewhat forgiving if they knew that the breached organization had a plan in place for communicating with patients in the event of a data breach, but many organizations are not prepared for the worst.

Previous research conducted by Experian suggests 34% of breach response plans do not include customer notification and only 52% of companies have a data breach crisis or communications plan in place. If the communications team is made aware in advance of notification requirements, the people responsible for the communications are mapped out, and approval processes are planned in advance, it will allow notifications to be issued much more quickly.

While incredibly fast breach notifications are expected, in practice it is often not possible to issue notifications in such a short time frame. A phishing attack that results in an email account being subjected to unauthorized access requires every email in that email account to be checked for PHI. It is not always possible to automate that search effectively and manual checks are often required. It is therefore important to start investigations promptly, yet 84% of businesses did not include forensic analysis in their breach response plans which can lead to delays in issuing notifications.

Slow and ineffective communication is likely to add insult to injury following a data breach. 66% of respondents said slow breach notification and poor communication would likely see them stop doing business with the breached entity, and 45% of respondents would not only seek an alternative service provider, they would also instruct their friends and family members to do the same.

*Data for the report came from an Experian survey of 1,000 adults in the United States by consultancy firm KRC Research in July 2019.

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Hurricane Dorian: Limited HIPAA Waiver Issued in Puerto Rico, Florida, Georgia, South Carolina

Posted by HIPAA Journal

Alex Azar, Secretary of the Department of Health and Human Services (HHS) has declared a public health emergency (PHE) in Puerto Rico and the states of Florida, Georgia, and South Carolina due to Hurricane Dorian.

The announcement follows the presidential PHE in the above areas as the states prepare for when the hurricane makes landfall. The declaration was accompanied by the announcement of a limited waiver of HIPAA sanctions and penalties for certain provisions of the HIPAA Privacy Rule, as mandated by the Project Bioshield Act of 2004 of the Social Security Act. The waiver only applies in the emergency areas and for the period of time covered by the PHE.

The waiver applies to hospitals that have implemented their disaster protocol, and only for up to 72 hours from when the disaster protocol was implemented, unless the PHE declaration terminates before that 72-hour period has elapsed.

Once the PHE comes to an end, hospitals are required to comply with all requirements of the HIPAA Privacy Rule for all patients, including those still under the care of the hospital when the PHE ends. The HHS notes that during a PHE, the requirements of the HIPAA Privacy and Security Rules remain in place.

Even in the absence of a HIPAA waiver, the HIPAA Privacy Rule permits the sharing of patient information with friends, family, public health officials, and emergency personnel. Entities can share patient information for the purposes of providing treatment, for public health activities, and to lessen a serious threat to public health or safety. Information can also be shared with patients’ friends, family and other individuals involved in their care to ensure that proper care and treatment can be provided.

Under the terms of the HIPAA waiver, the HHS agrees to waive HIPAA sanctions and penalties for the following provisions of the HIPAA Privacy Rule:

  • The requirements to obtain a patient’s agreement to speak with family members or friends involved in the patient’s care. See 45 CFR 164.510(b).
  • The requirement to honor a request to opt out of the facility directory. See 45 CFR 164.510(a).
  • The requirement to distribute a notice of privacy practices. See 45 CFR 164.520.
  • The patient’s right to request privacy restrictions. See 45 CFR 164.522(a).
  • The patient’s right to request confidential communications. See 45 CFR 164.522(b).

Further information on the waiver and HIPAA privacy and disclosures of PHI in emergency situations can be found on the following link: https://www.hhs.gov/sites/default/files/hurricane-dorian-hipaa-bulletin.pdf

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82% of Healthcare Organizations Have Experienced a Cyberattack on Their IoT Devices

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82% of healthcare providers that have implemented Internet-of-Things (IoT) devices have experienced a cyberattack on at least one of those devices over the course of the past 12 months, according to the Global Connected Industries Cybersecurity Survey from Swedish software company Irdeto.

For the report, Irdeto surveyed 700 security leaders from healthcare organizations and firms in the transportation, manufacturing, and IT industries in the United States, United Kingdom, Germany, China, and Japan. Attacks on IoT devices were common across all those industry sectors, but healthcare organizations experienced the most cyberattacks out of all industries under study.

The biggest threat from these IoT cyberattacks is theft of patient data. The attacks also have potential to compromise end user safety, result in the loss of intellectual property, operational downtime and damage to the organization’s reputation. The failure to effectively secure the devices could also potentially result in a regulatory fine.

When asked about the consequences of a cyberattack on IoT devices, the biggest concern was theft of patient data, which was rated as the main threat by 39% of healthcare respondents. Attacks on IoT devices can also threaten patient safety. 20% of respondents considered patient safety a major risk and 30% of healthcare providers that experienced an IoT cyberattack said patient safety was actually put at risk as a direct result of the attack.

12% of respondents said theft of intellectual property was a major risk, and healthcare security professionals were also concerned about downtime and damage to their organization’s reputation.

The main impact of these attacks is operational downtime, which was experienced by 43% of companies, theft of data (42%), and damage to the company’s reputation (31%).

Mitigating IoT cyberattacks comes at a considerable cost. The average cost to resolve a healthcare IoT cyberattack was $346,205, which was only beaten by attacks on the transport sector, which cost an average of $352,639 to mitigate.

Even though there are known risks associated with IoT devices, it does not appear to have deterred hospitals and other healthcare organizations from using the devices. It has been estimated up to 15 million IoT devices are now used by healthcare providers. Hospitals typically use an average of 10-15 devices per hospital bed.

Securing the devices can be a challenge, but most healthcare organizations know exactly where the vulnerabilities are. They just lack the resources to correct those vulnerabilities.

Manufacturers need to do more to secure their devices. Security is often an afterthought and safeguards are simply bolted on rather than being incorporated during the design process. Fewer than half of device manufacturers (49%) said security is factored in during the design of the devices and only 53% of device manufacturers conduct code reviews and continuous security checks.

82% of device manufacturers expressed concern about the security of their devices and feared safeguards may not be enough to prevent a successful cyberattack. 93% of device manufacturers said security of their devices could be improved a little to a great deal, as did 96% of device users.

“The previous mindset of security as an afterthought is changing. 99 percent agree that a security solution should be an enabler of new business models, not just a cost,” explained the researchers in their recent report. “This clearly indicates that businesses realize the value add that security can bring to their organization.”

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UCMC and Google File Motions to Dismiss HIPAA Privacy Lawsuit

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On June 26, a patient of University of Chicago Medical Center (UCMC) filed a lawsuit against the medical center and Google over an alleged privacy violation related to the sharing of protected health information (PHI) without first properly de-identifying the data.

Patient information was shared with Google to assist with the development of its predictive medical data analytics technology. HIPAA does not prohibit the sharing of information with third parties such as technology companies, provided consent is obtained from patients prior to information being shared.

Alternatively, healthcare organizations can share patient information provided it is de-identified. Under HIPAA, that means removing 18 identifiers to ensure patients cannot be identified. HIPAA calls for one of two methods to be used to de-identify PHI: Expert determination or the safe harbor method. The latter involves stripping PHI of all 18 identifiers, while the former requires an expert to determine, through recognized statistical and scientific principles, that the risk of patients being re-identified is sufficiently low.

The lawsuit alleges UCMC failed to remove all the necessary information from the data prior to it being shared with Google. In addition to the dates and times when patients checked in/out of hospital, the lawsuit alleges “copious free-text notes” were also shared with Google.

The time stamps place each patient at the hospital at a specific time, which places patient privacy at risk. The lawsuit alleges the inclusion of time stamps violates the provisions of the safe harbor de-identification method and that UCMC did not obtain consent from patients to share their data with Google.

The main issue is Google already stores vast quantities of user data from its “prolific data mining” activities and that the tech giant is in a position where it could identify all individuals from the medical records provided by UCMC.

The lawsuit even goes as far as to suggest the collaboration between the medical center and the hospital is an attempt to “pull off what is likely the greatest heist of consumer medical records in history.”

Last week, UCMC and Google filed motions to have the lawsuit dismissed. The defendants claim that a secure process was employed to de-identify patient data and that the process was fully compliant with HIPAA Rules. Further, Google argues that the plaintiff and other class members do not allege Google has used its data to re-identify patients, only that the company has the capability of doing so. Consequently, no injury has been sustained as a result of the sharing of information and even if an injury had been sustained, the case should be dismissed as there is no private right of action under HIPAA.

The defendants also argue that the definition of the intrusion provided by the plaintiffs does not fall under HIPAA as each patient voluntarily provided their medical information to the medical center. Instead, it falls under the Consumer Fraud and Deceptive Business Practices Act.

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73 Email Accounts Compromised in Major Phishing Attack on NCH Healthcare System

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The importance of security awareness training for healthcare employees has been highlighted by a recent phishing attack on Bonita Springs, FL-based NCH Healthcare System.

The attack was detected on June 14, 2019 when suspicious email activity was identified in relation to its payroll system. The investigation revealed a staggering 73 employees had responded to phishing emails and disclosed their account credentials to the scammers.

It is common for healthcare organizations to identify an email account breach and later discover the attack was more extensive than originally thought. Oftentimes, several emails accounts are discovered to have been compromised, often as a result of lateral phishing – The use of one compromised email account to send phishing emails to other individuals in the organization. However, a breach as extensive as this is fortunately rare.

NCH Healthcare system is still investigating the attack and is being assisted by a third-party computer forensics firm. The initial findings of the investigation suggest the attackers were not concerned with obtaining PHI, instead the goal of the attackers appears to have been to redirect payroll payments.

The forensic team confirmed on July 2, 2019 that some patient information was exposed as a result of the attack, but as the investigation is still ongoing, at this stage no confirmation has been issued on the types of information that were potentially compromised. Affected individuals will be notified accordingly when the investigation has concluded.

That process is likely to take some time given the extent of the breach and the number of emails in the compromised accounts that need to be checked to determine whether they contain protected health information.

NCH compliance officer Kelly Daly said the security measures put in place prior to the phishing attack limited the harm caused. Without those measures, more of the company’s 5,000 employees could also have fallen for the scam.

No reports have been received to date that suggest patients’ PHI has been misused, but patients are being advised to monitor their explanation of benefits statements and accounts for signs of identity theft and other misuses of their personal information.

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OCR Offers Advice on Managing Malicious Insider Threats

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Healthcare organizations can implement robust defenses to prevent hackers from gaining access to sensitive data, but not all threats come from outside the organization. It is also important to implement policies, procedures, and technical solutions to detect and prevent attacks from within.

Healthcare employees require access to protected health information (PHI) to perform their work duties. While those individuals may be deemed trustworthy, providing access to PHI exposes the organization to risk. Workers can go rogue and access patient information without authorization and could easily abuse their access rights and steal patient data for financial gain.

There will always be the occasional bad apple, but the 2019 Verizon Data Breach Investigations Report suggests the problem is far more prevalent. According to the report, 59% of all security incidents and data breaches analyzed for the report were caused by insiders.

Many of those breaches were due to mistakes made by healthcare employees, but a significant percentage were caused by malicious insiders who stole patient information for financial gain. Common malicious insider attacks include accessing the medical records of celebrities for financial gain and stealing patient data to commit identity theft and fraud.

These attacks can have grave implications for patients, who may suffer huge losses from identity theft and other misuses of their PHI. The attacks can also cause financial and reputational harm to the healthcare organization and expose the organization to regulatory fines. Memorial Healthcare System was fined $5.5 million for HIPAA violations related to the inappropriate access and theft of health data by some of its employees in 2012.

This week, the Department of Health and Human Services’ Office for Civil Rights (OCR) has issued advice to healthcare organizations on how they can reduce the risk of insider breaches and ensure they are detected rapidly when they do occur.

In its 2019 Summer Cybersecurity Newsletter, OCR offers tips on overcoming the challenges associated with protecting patient data from attacks from within and explains how risk can be managed to comply with HIPAA Rules.

In order to protect patient data, healthcare providers must know all locations whether patient information is stored and how that information flows throughout the organization. Without such knowledge it is impossible to conduct a thorough and accurate risk analysis to determine all risks to the confidentiality, integrity, and availability of patient data and reduce those risks to a reasonable an appropriate level.

Physical, technical and administrative access controls must be implemented to protect patient data against unauthorized access from within. Role-based access controls can help to reduce risk by preventing employees from accessing resources they are not authorized to use. Those controls should limit access to the minimum necessary information required to perform that individuals work duties.

OCR also reminds covered entities that they should control what individuals are able to do with patient data. If view only access is required, users should not be able to modify, delete, or download data. Controls should be implemented to prevent access from certain devices such as smartphones and the copying of data to portable storage devices such as zip drives.

The complex nature of healthcare IT systems makes it hard to achieve total visibility into the entire network and see every device in use. However, without full visibility, it is difficult to identify unauthorized data access quickly. OCR reminds covered entities that they must overcome the challenges and gain visibility into what users are doing on the network. Security teams must regularly check system, event, application, and audit logs in order to quickly detect suspicious activity and unusual patterns of data access. It may not be possible to prevent insider breaches, but when they occur, they must be identified and rectified promptly. There have been many cases of insiders accessing patient records without authorization for several years before the breach is detected.

Safeguards can be implemented, and policies and procedures developed to reduce risk, but those measures may not remain effective forever. Security is a dynamic process. Safeguards, policies and procedures need to be regularly assessed to ensure they continue to be effective. Access rights should be monitored and changed as appropriate when employees change role or transfer to a different department, and physical and electronic access to data must be terminated quickly when employees leave the organization.

Preventing and detecting attacks by malicious insiders is certainly a challenge, but by recognizing the risks and implementing appropriate safeguards, the risk of a breach can be managed and reduced to an acceptable level.

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Ransomware Attack Impacts More Than 400 U.S. Dental Practices

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A ransomware attack on a medical record backup service has prevented hundreds of dental practices in the United States from accessing their patients’ records.

The attack occurred on August 26, 2019 and affected the DDS Safe backup solution developed by Wisconsin-based software company, Digital Dental Record (DDS). The DDS system was accessed via an attack on its cloud management provider, West Allis, WI-based PerCSoft. Ironically, the DDS website states DDS Safe helps to protect dental practices against ransomware attacks.

The attack did not affect all dental practices using the DDS Safe solution. Initial reports suggest between 400 and 500 of the 900 dental practices using the solution have been affected by the REvil/Sodinokibi ransomware attack.

PerCSoft, assisted by a third-party software company, has obtained a decryptor and is in the process of recovering the encrypted files. According to a statement from DDS, recovery of files is estimated to take between 30 minutes to 4 hours per client.

Some dental practices have reported file loss as a result of the attack and others have said the decryption process did not work. With the attack coming so close to the end of the month, several dental practices have expressed concern that the attack would prevent them from processing payroll payments. At the time of writing, around 100 dental practices have successfully recovered their files.

Since there is no free decryptor for REvil ransomware available through the NoMoreRansom project, it is highly probably that the ransom was paid. That has not been confirmed publicly by either company, although Brian Krebs of Krebs on Security said several sources have confirmed that PerCSoft paid the ransom to obtain the decryptor.

The ransom amount is unknown, but one Reddit user claims PerCSoft – or its insurer – paid $5,000 per client for the decryptor. That would put the total ransom demand at $2.5 million, which is the same as the demand for the coordinated Sodinokibi ransomware attack that affected 22 government entities in Texas earlier this month.

Both attacks impacted multiple entities by attacking a software provider or managed service provider (MSP). This appears to be the modus oprandi of the threat actors behind the attack. Another attack in June targeted the MSP platform, Webroot SecureAnywhere, which allowed REvil/Sodinokibi ransomware to be deployed on clients’ systems.

The threat actors behind REvil ransomware are running a ransomware-as-a-service operation using a limited number of affiliates to distribute the ransomware. By using a small number of experienced affiliates, the threat actors hope to stay under the radar.

On hacking forums, the threat actors have been trying to recruit affiliates, five of whom have been guaranteed earnings of $50,000. Other affiliates have been told they will earn a minimum of $10,000. The threat actors are offering affiliates 60% of any ransom payments they generate and claim to be experienced, ‘professional’ ransomware developers that have been working in the field for the past five years.

While the code for REvil ransomware differs significantly from other ransomware variants, Tesorion researchers have found code similarities with the now defunct GandCrab ransomware, which was decommissioned this year. The threat actors behind GandCrab claimed to have retired after earning so much money from their ransomware-as-a-service operation over the past 18 months, although Tesorion researchers suspect at least some of the individuals involved in GandCrab may have got involved with or are responsible for REvil ransomware.

Regardless of who is behind the attacks, they are unlikely to windup such a profitable operation any time soon. As long as ransom demands continue to be paid by businesses and their insurers, the attacks will continue.

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July 2019 Healthcare Data Breach Report

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May 2019 was the worst ever month for healthcare data breaches with 46 reported breaches of more than 500 records. More breaches were reported in May than any other month since the HHS’ Office for Civil Rights started publishing breach summaries on its website in 2009. That record of 44 breaches was broken in July.

July saw 50 healthcare data breaches of more than 500 records reported to the Department of Health and Human Services’ Office for Civil Rights, which is 13 more breaches than the monthly average for 2019 and 20.5 more breaches than the monthly average for 2018.

July 2019 was the second worst month in terms of the number of healthcare records exposed. 25,375,729 records are known to have been exposed in July.

There are still 5 months left of 2019, yet more healthcare records have been breached this year than in all of 2016, 2017, and 2018 combined. More than 35 million individuals are known to have had their healthcare records compromised, exposed, or impermissibly disclosed this year.

Causes of July 2019 Healthcare Data Breaches

 

The main reason for the increase in reported data breaches in July is the colossal data breach at American Medical Collection Agency (AMCA). AMCA provides medical billing and collection services and its clients included some of the largest medical testing laboratories in the United States. Those clients have now been lost as a result of the breach.

The final victim count is not yet known, nor the number of records compromised in the breach. To date, 22 healthcare organizations have confirmed they have been affected and more than 24 million records are known to have been exposed. At least 8 healthcare organizations have not yet submitted their breach reports to OCR.

Healthcare Providers Impacted by the American Medical Collection Agency Data Breach

  Healthcare Organization Estimated Records Exposed Confirmed Victim Count
1 Quest Diagnostics/Optum360 11,900,000 11,500,000
2 LabCorp 7,700,000 10,251,784
3 Clinical Pathology Associates 2,200,000 1,733,836
4 Carecentrix 500,000 467,621
5 American Esoteric Laboratories 541,900 409,789
6 Inform Diagnostics 173,617 173,617
7 Laboratory Medicine Consultants 147,600 140,590
8 Integrated Regional Laboratories 29,644 29,644
21 Penobscot Community Health Center 13,000 13,299
9 West Hills Hospital and Medical Center / United West Labs 10,650 10,650
10 Seacoast Pathology, Inc 10,000 8,992
11 Arizona Dermatopathology 7,000 5,903
12 Western Pathology Consultants 4,550 4,079
13 Natera 3,000 3,035
14 Sunrise Medical Laboratories 427,000 TBC
15 BioReference Laboratories/Opko Health 422,600 TBC
16 CBLPath Inc. 148,900 TBC
17 CompuNet Clinical Laboratories 111,000 TBC
18 Austin Pathology Associates 46,500 TBC
19 South Texas Dermatopathology PLLC 16,100 TBC
20 Pathology Solutions 13,300 TBC
22 Laboratory of Dermatology ADX, LLC 4,240 TBC

 

Hacking and IT incidents dominated the breach reports in July with 35 incidents reported. Those breaches resulted in the exposure of 23,203,853 healthcare records. The average breach size was 662,967 records and the mean breach size was 4,559 records.

There were 9 unauthorized access/disclosure incidents in July involving 2,160,699 healthcare records. The average breach size was 240,077 records and the mean breach size was 3,881 records.

There were three theft incidents reported that involved 3,584 records, 2 loss incidents that exposed 4,593 records, and one improper disposal incident that exposed 3,000 records.

Largest Healthcare Data Breaches in July 2019

Name of Covered Entity Covered Entity Type Individuals Affected Type of Breach Location of Breached PHI
Optum360, LLC Business Associate 11,500,000 Hacking/IT Incident Network Server
Laboratory Corporation of America Holdings dba LabCorp Healthcare Provider 10,251,784 Hacking/IT Incident Network Server
Clinical Pathology Laboratories, Inc. Healthcare Provider 1,733,836 Unauthorized Access/Disclosure Network Server
CareCentrix, Inc. Healthcare Provider 467,621 Hacking/IT Incident Network Server
Bayamon Medical Center Corp. Healthcare Provider 422,496 Hacking/IT Incident Network Server
Memphis Pathology Laboratory d/b/a American Esoteric Laboratories Healthcare Provider 409,789 Unauthorized Access/Disclosure Network Server
Laboratory Medicine Consultants, Ltd. Healthcare Provider 140,590 Hacking/IT Incident Network Server
Imperial Health, LLP Healthcare Provider 116,262 Hacking/IT Incident Desktop Computer, Network Server
Puerto Rico Women And Children’s Hospital, LLC Healthcare Provider 99,943 Hacking/IT Incident Network Server
Ameritas Life Insurance Corp. Health Plan 39,675 Hacking/IT Incident Email

Location of Breached Protected Health Information

There was a major increase in network server incidents in July. The rise was due to the AMCA breach but also an uptick in ransomware attacks on healthcare providers. Phishing also continues to pose problems for healthcare organizations. 21 of the breaches reported in July involved PHI stored in email accounts.

The number of reported phishing attacks strongly suggests multi-factor authentication has not yet been implemented by many healthcare organizations. If credentials are compromised, MFA can help prevent the email account from being remotely accessed.

July 2019 Healthcare Data Breaches by Covered Entity Type

Healthcare providers were the worst affected covered entity in July with 39 breaches reported. Three health plans reported breaches and there were 8 breaches reported by business associates of HIPAA covered entities. A further 18 healthcare data breaches had some business associate involvement.

July 2019 Healthcare Data Breaches by State

July’s 50 data breaches were spread across 26 states and Puerto Rico. Typically, California experiences the most data breaches in any given month due to the number of healthcare organizations based in California; however, California only saw one healthcare data breach reported in July.

Minnesota was the worst affected state with 6 reported breaches. Four breaches were reported by healthcare organizations based in Michigan, Pennsylvania, and Texas. Three breaches were reported in Nevada and Tennessee, two breaches were reported in each of North Carolina, Ohio, Wisconsin, and Puerto Rico.

One breach was reported in each of Alabama, Arkansas, Arizona, California, Connecticut, Georgia, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Missouri, Nebraska, New Hampshire, New York, Oregon, and South Carolina.

HIPAA Enforcement Activity in July 2019

It has been a relatively quiet year for HIPAA enforcement by the HHS’ Office for Civil Rights. While there were two settlements agreed in May 2019 to resolve HIPAA violations, no further financial penalties have been announced.

State Attorneys General also have the authority to take action against healthcare organizations that have violated HIPAA Rules. July saw one settlement reached between Premera Blue Cross and 30 state attorneys general over its 10.4 million-record data breach in 2014.

Under the terms of the settlement agreement, Premera Blue Cross is required to pay a financial penalty of $10,000,000 to resolve the HIPAA violations discovered during the Washington Attorney General-led investigation.

In addition to the $10 million penalty, Premera Blue Cross settled a class action lawsuit for $74 million. $32 million will cover claims from breach victims and $42 million will be directed toward improving cybersecurity.

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