Settlement Reached with Anthem Hacking

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Written By David Johnson

After a period of back and forth disputes, the US District Court of Northern California ruled in favor of around 19 million patients with medical records exposed by a hack in 2015. Anthem inc. will offer 24 months of credit monitoring to patients exposed on top of a $115 million settlement. Because only 1.33 million individuals exposed have filed a claim, individual settlements will be around $10,000 each.

Initially, litigators and advocacy teams refer HIPAA violation claims internally and externally to the US Department of Health and Human Services (HHS). External claim review assesses fault and penalties. In the case of Anthem, however, patients and patient groups filed several different class action lawsuits against anthem. These were consolidated to navigate multiple districts into one filed though the Judicial Panel on Multidistrict Litigation.

There were objections about the settlement not being sufficient enough for those exposed; however, the residing district Judge felt otherwise. Additionally, patients exposed had the option to receive $50 instead of receiving credit monitoring services.

Large medical organizations may be hesitant to report HIPAA violations. As a consequence of negative public reception alongside financial penalties and revoked privileges, there is reason to avoid litigation. However, HHS mandates that immediate HIPAA violation reporting. Furthermore, HHS has developed and easy-to-use reporting tool entitled ‘Breach Reporting Tool.’ Individuals can use these tools including lobbyists, legislators, and congressional officials as well as organizations that store and use protected health information (PHI). HHS includes a link to file a breach at the top of the information page.

At American Medical Compliance, we offer HIPAA learning management software with courses that covers a wide variety of material specific to any health profession. Insulate your business and protect your patients by contacting a representative today!

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