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Insurer Anthem Will Pay Record $16M for Massive Data Breach

October 16, 2018 / securityweek

The nation's second-largest health insurer has agreed to pay the government a record $16 million to settle potential privacy violations in the biggest known health care hack in U.S. history, officials said Monday. The personal information of nearly 79 million people — including names, birthdates, Social Security numbers and medical IDs — was exposed in the cyberattack, discovered by the company in 2015. The settlement between Anthem Inc. and the Department of Health and Human Services represents the largest amount collected by the agency in a health care data breach, officials said. "When you have large breaches it erodes people's confidence in the privacy of their sensitive information, and we believe such a large breach of trust merits a substantial payment," said Roger Severino, director of the HHS Office for Civil Rights. The office also enforces the federal health care privacy law known as HIPAA, or the Health Insurance Portability and Accountability Act.