Penalty Amount
$926,803
Horizon Blue Cross Blue Shield of New Jersey agreed to pay $926,803 in civil penalties and implement a corrective action plan to settle allegations that it failed to encrypt laptops containing protected health information, violating HIPAA/HITECH and the New Jersey Consumer Fraud Act.
Horizon BCBSNJ must pay a civil penalty of $926,803.22, implement a corrective action plan with third-party risk analysis and annual reports for two years.
In-house legal teams should review vendor agreements, employee policies, and business associate agreements (BAAs) for clauses related to data security, encryption, asset management, and third-party access. Specifically, examine requirements for encrypting portable devices containing ePHI, procedures for tracking and managing company-issued assets, vendor oversight and supervision obligations, and breach notification protocols. Changes may be needed to mandate encryption on all devices, implement rigorous asset inventory processes, require documented security training, and include audit rights to verify compliance with HIPAA/HITECH and state data security standards.
Entity
Horizon Blue Cross Blue Shield of New Jersey
Also known as: Horizon Blue Cross Blue Shield
Industry
HealthcareOfficial Press Release
https://www.njoag.gov/horizon-blue-cross-blue-shield-of-new-jersey-agrees-to-pay-1-1-million-tighten-data-security-to-settle-allegations-of-privacy-lapses-concerning-personal-information-of-policyholders/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Horizon Blue Cross Blue Shield of New Jersey"
"$926,803.22 civil penalty"
"federal HIPAA/HITECH"
"New Jersey Consumer Fraud Act"
"the company’s failure to comply with federal healthcare data security standards threatened to expose private information of its members – including their names, addresses, birthdates, insurance identifications and, in some instances, Social Security Numbers and limited clinical data."
$18.0M
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$45.0M
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