Insurance Company fined BIG for Breach

Why would an insurance company be fined for a data breach?

2DThere was a security breach at Triple-S Salud, Inc. (TSS), which is a subsidiary of Triple-S Management GTS. The Puerto Rico Health Insurance Administration plans on imposing a $6.8 million fine on TSS.

The breach involved 13,336 of TSS’s Dual Eligible Medicare beneficiaries. The penalty includes suspending all new DEM enrollments and alerting enrollees of their right to back out.

The PRHIA says that Triple-S failed to implement all the required steps in response to the security breach.

TSS sent out a pamphlet last September that unintentionally showed the Medicare Health Insurance Claim Number of some of the recipients. This is a unique number that’s assigned by the Social Security Administration. It’s considered to be protected health information.

An investigation was carried out by TSS, and this subsidiary did report the incident to federal government agencies and Puerto Rico. TSS complied with the PRHIA’s requests for information pertaining to the DEM beneficiaries. TSS also took additional measures, one of which was that of issuing an alert of the breach through local media; all of the affected beneficiaries were notified by mail of the breach.

In the filing, Triple-S affirms that it takes the matter very seriously and is “working to prevent this type of incident from happening again.” However, it’s currently not able to assess the financial impact of the breach on TSS, nor can it estimate the sanctions’ impact.

Triple-S adds that a response is being prepared by TSS to give to the PRHIA, and that TSS has a right to make a request for an administration hearing.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.