Blue Cross Blue Shield of Tennessee to Pay $1.5M For Alleged HIPAA Violation

Blue Cross Blue Shield of Tennessee has agreed to pay the Department of Health and Human Services $1.5 million to settle allegations that it violated the Health Insurance Portability and Accountability Act.

In 2009, BCBST submitted a notice to HHS that reported 57 encrypted hard drives containing personal health information for more than one million people had been stolen from a leased facility in Tennessee.

A 2010 investigation conducted by the Office for Civil Rights found "BCBST failed to implement appropriate administrative safeguards to adequately protect information remaining at the leased facility," according to the release.

In addition to the monetary settlement, BCBST must enact a corrective action plan for its HIPAA compliance.

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