Kaiser Permanente division fined $200k for patient data breach

Linda Rosencrance   Today’s Top Stories    or  Other Security Stories  

Why SaaS is Vital to Email and Web Security Avoiding the Latest Phishing Attacks Safeguarding Critical Data Intercept Spam & Viruses Seven Steps to Secure and Seamless Field Mobility Backup and Recovery for Microsoft Exchange Server Sign up to receive Security Resource Alerts

June 21, 2005 (Computerworld) -- The California Department of Managed Health Care (DMHC) has fined Kaiser Foundation Health Plan, a division of Kaiser Permanente, $200,000 for exposing the confidential health information of about 150 people.
The DMHC said the information had been available on a publicly accessible Web site for as long as four years.
"Patients must be assured that health plans will, at all costs, do everything possible to protect confidential information," Cindy Ehnes, director of the DMHC, said in a statement. "As we work on broadening the use of electronic medical records to improve patient care on both the state and federal levels, health plans must make security of confidential information a top priority."
An investigation by the agency found that Kaiser was responsible for the creation of a systems diagram Web site used as a testing portal by its IT staff. The site contained confidential patient information, including names, addresses, telephone numbers and lab results. According to the DMHC, Kaiser set up the site in 1999 without the prior consent of the affected patients.
DMHC said it was concerned that Kaiser allowed the Web site to languish on the Web in an accessible format and did not act to remove it until its existence was brought to the attention of federal civil rights authorities in January (see Update: Kaiser Permanente patient data exposed online).
In addition, Kaiser authorities chose not to inform state regulators until after the site had been reported to the media in March, the DMHC said. Kaiser has since informed all of its affected members about the incident.
"Not only was this a grave security breach, Kaiser did not actively work to protect patients until after [it] had been caught," said Ehnes. "We're imposing this fine because we consider this act to be irresponsible and negligent at the expense of members' privacy and piece of mind."
"We have fully cooperated with the Department and accept their ruling in this matter," Matthew Schiffgens, director of Issues Management at Kaiser Foundation Health Plan Inc., said in a e-mail statement. "We wish to assure our members that we take guarding their privacy seriously and have taken a number of steps to address this incident: The site in question has been taken down; KP policy is that all sites containing PHI be behind the firewall or password protected; and we are currently conducting a full audit of all Web sites."
Under California state law, a health plan can be fined if it has violated the confidentiality of medical information without first obtaining an authorization from the patient.
Berkeley, Calif., resident Elisa Cooper, a former Web coordinator at Kaiser Permanente, brought the breach to the attention of federal regulators and posted a link to the Kaiser Web site on her Web log last year. Kaiser then sued her for invasion of privacy and breach of contract. That case is still pending in Alameda County Superior Court (see Court orders blogger to stop posting Kaiser patient data).
In addition, the DMHC ordered Cooper to stop posting the link to the information, which she did, said DMHC spokeswoman Lynne Randolph. "Her case is now closed."
"I'm relieved that the DMHC has formally confirmed that Kaiser was responsible for posting the systems diagrams Web site. For three months I've been fending off Kaiser's attempts to pin that site on me, and I'm still being sued by Kaiser," Cooper said in an e-mail to Computerworld.
Cooper said she fears Kaiser could drag her back and forth to court for years because she doesn't know how the legal system works and can't afford to hire a lawyer.
"The DMHC determined the systems diagrams site had been publicly accessible since 1999, and it would still be there today if I hadn't pointed it out," she said. "I just hope the next whistleblower isn't afraid to file a complaint or talk about a problem they've discovered because of what happened to me. The DMHC still has not apologized for giving the public the impression I was the one who posted the Web site."
Kaiser officials, who have been cooperating throughout the investigation, have until June 25 to present any information to dispute the state agency's findings, or the fine will be imposed, the DMHC said.

Print this Story

Send Us Feedback

E-mail this Story

Digg this Story

Slashdot this Story

"It's IT Blogwatch: in which Grisoft, maker of the AVG anti-virus package, backs down in its attempt to DDoS the..." Read more... Read more Security posts or See all Blogs

Google gives away home-cooked Web application security scanner HP eyes move of support facilities out of Colorado Springs Microsoft trumpets security additions in upcoming IE8 More top stories...

How much is too much? Upgrade your notebook without going over the line French ruling on counterfeit goods could have far-reaching effects for eBay Apple cuts price of high-end SSD MacBook Air by $500

This old laptop: Revitalizing an aging notebook on the cheap All it takes is a couple hours and about $125 to breathe new life into an old laptop. Here's how. Bill Gates moves on Is Microsoft's Golden Age over? What are Gates' most memorable quotes? Find out in Computerworld's complete coverage of the end of the Bill Gates era at Microsoft. Five things you should never tell your boss There are some things your CIO definitely doesn't want to hear. Also don't miss the flipside, Five things you should always tell your boss. Hands-On: Firefox 3 fixes what's broke and keeps what's right With its latest version, Mozilla's browser continues to raise the bar for what Web browsers should be. Windows Vista A to Z Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS. More Continuing Coverage After 9/11: Homeland SecurityAsk a Premier 100 IT LeaderBlackBerry Legal BattleData Security BreachesElectronic VotingFirefoxH-1B VisasHP's Boardroom ScandalHandheld DevicesHurricane Katrina AftermathMicrosoft Legal IssuesMicrosoft's VistaOpen SourceRFID TechnologySCO's Linux FightSarbanes-Oxley ActSpamVoice Over IPWi-FiWindows Meta File VulnerabilityWindows XP Service Pack 3 IT Careers 2010 Four years from now, the IT field will be a vastly different place. Will you be ready? More Special Reports Premier 100 IT Leaders 2007 Best in Class2006 Computerworld Horizon Awards2006 Premier 100 IT Leaders2006 Salary Survey2007 Best Places to Work in IT2007 IT Forecast2007 Premier 100 IT Leaders40 Years of ComputerworldASPs, Take TwoBest Places to Work in IT 2003Best Places to Work in IT 2004Best Places to Work in IT 2005Best Places to Work in IT 2006Business Intelligence Home RunsBusiness Intelligence: Smarter BIBusiness Intelligence: The Future of BICRM Goes VerticalCRM: Sober CRMCareer Planning Guide 2005Careers: IT Profession 2010Computerworld Horizon Awards 2005Data Management: Mining for GemsData Management: Taming Data ChaosDevelopment: Hard-Workin' Web SitesDevelopment: New Tools New ChoicesDevelopment: The New World of Application DevelopmentDevelopment: The Web Services TsunamiDevelopment: Web Services HurdlesDisaster Recovery: Preparing for the WorstE-commerce Grows UpE-mail/Groupware: Big DecisionsFaces of Mobile ITForecast 2006Global MobileHardware: Multiple Cores, Multiple ChallengesHardware: On-Demand Un-HypedHardware: The Shape of Things to ComeHorizon Awards: 10 Cool Cutting Edge TechnologiesIT Management: Guide to Managing VendorsIT Management: Navigating Global ITIT Management: Recovery AheadIT Management: The Future of ITIT Management: The Resourceful Project ManagerInnovative Technology Awards 2004Management: Reinventing ITMicrosoft in TransitionMobile/Wireless Leaders and LaggardsMobile/Wireless: The Untethered WorkerMobile/Wireless: Tiny Gadgets, Huge CostsNetwork Management: Taking ControlNetworking: Turbulence Ahead!Networking: VoIP Goes MainstreamOperating Systems: In the Slow LaneOperating Systems: Linux Goes GlobalOperating Systems: Should You Nix Unix?Outsourcing: Offshore Buyer's GuideOutsourcing: Outsourcing DangersPremier 100 IT Leaders 2004 Best in ClassPremier 100 IT Leaders 2005 Best in ClassROI: Do the Math!Salary Survey 2003Salary Survey 2004Salary Survey 2005Security Action PlanSecurity: Compliance HeadachesSecurity: Proactive SecuritySecurity: Risk and RewardSecurity: Tips From Security ProsSouped-up SecurityStorage: Battling ComplexityStorage: Cheap & Secure Data StoresStorage: Stretching Your Storage DollarsStorage: The Lean Storage MachineStorage: The New Rules of StorageStorage: The Ultimate Backup GuideSupply Chain: Missing LinksSupply Chain: RFID Reality CheckThe Business of SecurityWeb 2.0 SecurityWireless: Wireless At Work All Zones Application Performance Zone Business Continuity Zone Data Center Management Zone Enterprise-Class Security Zone The File Data Management Zone Grid Computing on Windows Zone Security Management Zone ITIL Best Practices Zone The SAS Zone Storage Virtualization Zone Business Intelligence and Analytics Zone See your link here

Why SaaS is Vital to Email and Web Security Why SaaS is Vital to Email and Web Security Download this webcast, free, compilments of Webroot Software Go to the webcast  Computerworld Executive Bulletin: Building a Robust Antivirus Defense Download this Executive Bulletin (a $49.95 value) for free, compliments of MessageLabs. (Source: MessageLabs) Antivirus software alone isn't enough to prevent today's speedy, sophisticated virus attacks. Security managers should consider multitiered approaches that include behavior scanning, appliances that check e-mail for worms, and restricting user access to dangerous Web sites. Download this Executive Bulletin (a $49.95 value) for free, compliments of MessageLabs, to learn more. Download this executive briefing  Eliminate SPAM, Gain Productivity Get this white paper now! (Source: MessageLabs) Learn all about the dangers and the costs of spam in all its forms - from stock-touting to spreadsheet. Also, understand the drawbacks of traditional hardware- and software-based defenses - and the unique benefits of MessageLabs multi-layered, managed Anti-Spam solution; as illustrated by a real-world case study where MessageLabs stopped spam cold. Download this white paper  White Papers Read up on the latest ideas and technologies from companies that sell hardware, software and services. Deploying Virtualized NetWare on Linux Whitepaper Toward More Flexible, Next-Generation Collaboration Solutions Driving Business Success Through Workgroup Choice and Flexibility View more whitepapers

• Google gives away home-cooked Web application security scanner
• HP eyes move of support facilities out of Colorado Springs
• Microsoft trumpets security additions in upcoming IE8
• More top stories 

Security Management Zone Security management is the process of developing a comprehensive data protection plan. It takes into account all potential threats, the existing network environment, the future needs of the organization, and lays out a multi-tiered blueprint to integrate the security technology needed to combat these threats. CDW can help keep your network and data secure. Visit the CDW Security Management Zone now See All Zones

Fired up about IT? Join Sharkbait and share your true tales of IT. SharkBait is the place for you to sound off about everything IT – the good, the bad, and the rest of the weird stuff you deal with every day. New baits

"Security Directions" virtual trade show 2008's Code-Red Security Issues for Protecting the Enterprise Webcasts, white papers, demos, and more. Presented in a unique 3-d environment. Enter our show right now! Click here to enter

In Security Stripping away the trappings of applications, systems and networks, information is the core asset of most organizations. Our columnist describes how asserting the importance of information governance is crucial to making that asset tangible, addressable and protected. Click here to read the latest column by Jon Espenschied