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Multistate $21M Settlement with AMCA for Healthcare Data Breach

Retrieval-Masters Creditors Bureau d/b/a American Medical Collection AgencyMarch 11, 2021New Jersey Attorney General

Penalty Amount

$21,000,000

Consumers Affected

7,000,000

Summary

AMCA suffered an eight-month data breach from August 2018 to March 2019, exposing personal information including Social Security numbers, payment card data, and medical test details of over 7 million individuals nationwide, including 246,000 New Jersey residents. The multistate settlement requires AMCA to implement enhanced data security measures and pay $21 million, though payment is suspended due to the company's financial situation.

Remedy

AMCA must create and implement an information security program with an incident response plan, employ a qualified Chief Information Security Officer, hire a third-party certified auditor for security assessments, and cooperate with state attorneys general in related investigations, along with paying a suspended $21 million penalty.

Monetary PenaltyCompliance ProgramAudit RequirementReporting Requirements

Contract Impact

In-house legal teams should review all vendor agreements with healthcare service providers, data processing agreements, and business associate agreements (BAAs) under HIPAA. Specifically scrutinize clauses governing data security standards, breach notification timelines and procedures, audit rights, data encryption requirements, and indemnification provisions for data breaches. Given the settlement's focus on inadequate security leading to exposure of SSNs, payment cards, and medical information, contracts may need amendments to mandate specific technical safeguards (e.g., encryption, access controls), require regular security audits by the vendor, clarify breach reporting obligations (including to state attorneys general), and strengthen liability and remediation terms.

Contract Search Terms

data security requirementsbreach notification clauseHIPAA business associate agreementdata processing addendumencryption standardsthird-party vendor managementincident response plandata retention scheduleaudit rightsindemnification for data breaches

Violation Types

Entity Details

Entity

Retrieval-Masters Creditors Bureau d/b/a American Medical Collection Agency

Also known as: American Medical Collection Agency

Industry

Healthcare

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Retrieval-Masters Creditors Bureau d/b/a American Medical Collection Agency (AMCA)"
Fine Amount
"Although ACMA also agreed to pay $21 million"
Violation Description
"an unauthorized user gained access to the company’s internal system, collecting a broad array of personal information. The information included Social Security numbers, payment card information and, in some instances, the names of medical tests and diagnostic codes."

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