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« Promoting Science and Technology | Main | 3rd HIPAA Criminal Indictment; Another Insider Job »

Will Bad News Come in 3's For Health Net?

In the past several days Health Net made the news...in ways they would rather not have...

First this on 2/22:

"L.A. says Health Net illegally halts insurance"

"Los Angeles' city attorney has sued Health Net Inc. - one of California's largest insurers - accusing the company of unlawful and deceptive business practices for canceling coverage after patients make medical claims"

and

"Delgadillo said he's also initiating a criminal investigation into Health Net's practice of awarding employee bonuses for meeting annual goals for policy rescissions. State regulators in November fined Health Net $1 million for lying to investigators about engaging in this practice."

And then on 2/27:

"103,000 Doctors' Social Security Numbers Posted on Website by Accident"

From the reports it sounds like Health Net has poor information security practices...a passage from the report...

"Dr. Doug Reding tells us the numbers were posted to a website by a company called Health Net Federal Services based in Rancho Cordova, California. The company is a government contractor that deals with health insurance for military families and veterans. Health Net Federal Services representatives told us Wednesday night the company notified 103-thousand doctors in eleven states that their personal information was openly posted on a company website.

The states involved include Wisconsin, Michigan, Illinois, Indiana, Ohio, Pennsylvania, Tennessee, Iowa, Missouri, Kentucky and West Virginia.

Director of Communications, Molly Tuttle, says the information was accidently posted to the website for about two months, and involved doctors who had filed a claim with the company between September of 2005, and September of 2006."

Two months out in the open for anyone to see.

Oopsies! Pardon our mess!

Health Net Inc. appears to be the parent company of Health Net Federal Services.

I did a quick search to see if the last of the proverbial trilogy of bad things has happened to Health Net, but it does not appear to have...yet...wonder how good their HIPAA compliance is? Hmm...

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Rebecca Herold's Bio:

Rebecca Herold,CISSP, CIPP, CISM, CISA, FLMI, has been providing information security, privacy and regulatory assistance and services to organizations from a wide range of industries for over 18 years. Rebecca was instrumental in building the information security and privacy program while at Principal Financial Group, which was awarded the CSI Information Security Program of the Year Award in 1998. IT Security ranked Rebecca as one of the top 59 IT security influencers, and Computerworld put Rebecca their list of the 25 top privacy experts and on their list of the 9 best privacy consulting firms. Rebecca has been CPO for two consulting organizations, and has had her own information privacy, security and compliance business since 2004. Rebecca has written chapters for several books, dozens of articles, and has been writing a monthly privacy column for the CSI Alert newsletter since the beginning of 2001, and is working on her 11th book. Some of her other books include The Privacy Papers, Managing an Information Security and Privacy Awareness and Training Program, The Definitive Guide to Security Inside the Perimeter (Realtime Publishers), The Shortcut Guide to Improving IT Service Support through ITIL (Realtime Publishers), and The Practical Guide to HIPAA Privacy and Security Compliance. In addition, Rebecca is the leader of The Realtime IT Compliance Community where she posts to her IT Compliance weblog. You can contact Rebecca at: rebecca_herold@realtimepublishers.net.