In a lawsuit he described as “[s]adly . . . historic,” Connecticut Attorney General Richard Blumenthal sued Health Net of Connecticut, Inc. for allegedly failing to secure private patient medical records and financial information involving hundreds of thousands of Connecticut enrollees and promptly notify consumers endangered by the security breach. The case marks the first action by a state attorney general under the Health Information Technology for Economic and Clinical Health (“HITECH”) Act to enforce provisions of the Health Insurance Portability and Accountability Act (“HIPAA”). The suit also alleges a violation of Connecticut’s breach notification statute.

The complaint, filed January 12, 2010, alleges that on or about May 14, 2009 Health Net learned that a portable disk drive had disappeared from one of its offices. The disk contained unencrypted protected health information, social security numbers and bank account numbers for approximately 1.5 million past and present enrollees, including 446,000 Connecticut residents. Health Net did not begin notifying affected individuals until November 2009.

On January 13, 2010, the Attorney General filed a motion for a preliminary injunction. The proposed injunction mandates that Health Net and related defendants (i) comply with the privacy, security and other requirements of HIPAA; (ii) take corrective action and make “all efforts” to protect affected citizens against identity theft and other harm; and (iii) conduct “effective training of all members of their respective workforces (including independent contractors) on the policies and procedures with respect to protected health information, and personal information as defined under state law, regarding the requirements of federal and state law.”