Penalty Amount
$365,212
Aetna, Inc. settled with New Jersey and other states over allegations that it improperly disclosed protected health information of thousands of individuals through mailings that revealed HIV/AIDS status and AFib study participation. The settlement requires Aetna to implement policy reforms, hire an independent consultant, and pay a civil penalty of $365,211.59 to New Jersey.
Aetna must implement policy and training reforms to safeguard health information, hire an independent consultant to evaluate and monitor compliance with injunctive terms, and pay a civil penalty of $365,211.59 to New Jersey.
In-house legal teams should review all agreements involving protected health information (PHI), such as business associate agreements (BAAs) with vendors, customer contracts for health services, and employee confidentiality agreements. Key clauses to scrutinize include data sharing provisions, confidentiality obligations, breach notification requirements, and compliance with HIPAA and state privacy laws like the New Jersey AIDS Assistance Act. Specific attention should be paid to mailing and disclosure protocols to prevent inadvertent exposure of sensitive information, such as HIV/AIDS status or study participation. Revisions may be needed to mandate secure mailing practices (e.g., opaque envelopes), require regular training on PHI handling, include audit rights for monitoring third-party compliance, and update consent mechanisms for health-related communications.
Entity
Aetna, Inc.
Also known as: Aetna
Industry
InsuranceOfficial Press Release
https://www.njoag.gov/ag-grewal-reaches-settlement-with-aetna-over-privacy-violations-aetna-mailings-improperly-disclosed-addressees-protected-health-information/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"settlement agreement with Aetna, Inc."
"Aetna will pay a civil penalty of $365,211.59 to New Jersey."
"violated the federal Health Insurance Portability and Accountability Act (HIPAA)"
"The New Jersey AIDS Assistance Act, for example, prohibits the disclosure of any record that contains identifying information about a person who has, or is suspected of having, AIDS or HIV, without the person’s written consent or statutory authorization."
"improperly disclosed protected health information"
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$400.0M
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