Monday, October 01, 2012

Blue Cross of California Settles Security Breach

Posted by CotoBlogzz

Rancho Santa Margarita, CA  -- a settlement with Blue Cross of California  over allegations the company failed to protect the personal information of its members was announced today by California’s Attorney General Kamala Harris.

The lawsuit, filed in Los Angeles Superior Court today along with the settlement, alleges that Blue Cross of California, printed Social Security numbers on letters mailed to more than 33,000 of its Medicare Supplement and Medicare Part D subscribers between April 2011 and March 2012.  The complaint states that Anthem’s conduct violated a state law that restricts the disclosure of Social Security numbers.

After the incident, Blue Cross sent a letter to all affected members whose Social Security numbers were visible through the mailed envelope, notifying them of the breach and offering each a year of free credit monitoring services. 

The settlement requires Blue Cross to implement new technical safeguards for its data management system, restrict employee access to members’ Social Security numbers and provide enhanced data security training for all of its associates. 

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