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Texas AG Issues CIDs to BCBS and Conduent Over 4M Texans' Health Data Breach

Blue Cross Blue Shield of Texas and Conduent Business Services LLCFebruary 12, 2026Texas Attorney General

Consumers Affected

4,000,000

Summary

Texas Attorney General Ken Paxton issued Civil Investigative Demands to Blue Cross Blue Shield of Texas and Conduent Business Services LLC as part of an investigation into a massive data breach at Conduent that exposed the protected health information of approximately four million Texans. The breach occurred between October 21, 2024 and January 13, 2025, affecting Texas Medicaid recipients and other residents. The AG's office is investigating the security failures and compliance with Texas law.

Contract Impact

In-house legal teams should review all contracts with third-party service providers handling protected health information or other sensitive consumer data, ensuring they include robust data security safeguard requirements, clear breach notification timelines, and liability provisions for security failures. Contracts with vendors processing health data should specifically require compliance with applicable state and federal health privacy laws, regular security audits, and incident response protocols. Additionally, teams should verify that vendor agreements include provisions for prompt notification of any unauthorized access to data, as well as indemnification for breaches caused by vendor negligence.

Contract Search Terms

protected health information (PHI)data security safeguardsthird-party vendor data protectionbreach notification requirementssystem security audithealth data complianceincident response planvendor security assessment

Violation Types

Entity Details

Entity

Blue Cross Blue Shield of Texas and Conduent Business Services LLC

Also known as: Blue Cross Blue Shield and Conduent

Industry

Insurance

Official Sources

Source Evidence

Entity Name
"Blue Cross Blue Shield of Texas (“BCBS”) and Conduent Business Services LLC (“Conduent”)"
Consumers Affected
"exposed the sensitive personal data of approximately four million Texans"
Violation Types
"breach of Conduent’s system security that occurred between October 21, 2024 through January 13, 2025. During the breach, an unauthorized third-party accessed the protected health information of Texas residents, including Texas Medicaid recipients"
Jurisdiction
"Attorney General Ken Paxton"
Event Type
"part of the investigation of the Conduent data breach"
Entity Industry
"any insurance giant cut corners"

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