The Office of Civil Rights in the Dept of Health and Human Services (OCR) slapped the wrist of BCBS of Tennessee.
One million people’s protected health information was breached because Blue Cross Blue Shield (BCBS) of Tennessee violated data security laws. The settlement cost BCBS a little more than $1.00 per person—hardly a deterrent to other corporations or adequate punishment. However, that amount happens to be the same as the highest possible fine permitted by law (HITECH).
Still it appears that criminal charges could have been filed for “willful disregard” rather than OCR accepting a settlement. OCR’s finding that legally-required “adequate administrative and physical safeguards” were lacking is evidence of “willful neglect”.
Worst of all, the one million victims received NO protection against future ID theft or medical ID theft. OCR could have also required BCBS to mitigate future patient harms, but didn’t. New technologies can protect against medical ID theft by enabling patients to review all new claims, so they can detect and prevent fraudulent claims and erroneous data from being entered into their records.
Why didn’t OCR propose that BCBS adopt remedies to protect the patients whose records were breached from further misuse and theft? Shouldn’t OCR help protect victims?