HHS settles HIPAA case with BCBST for $1.5 million

On March 9, 2012, Blue Cross Blue Shield of Tennessee (BCBST) agreed to pay $1,500,000 to settle potential violations of the HIPAA Privacy and Security Rules.  BCBST also agreed to a corrective action plan which includes: reviewing, revising, and maintaining its Privacy and Security policies and procedures; conducting regular and robust trainings for all BCBST employees covering employee responsibilities under HIPAA; and performing monitor reviews to ensure BCBST compliance with the plan. The investigation followed a notice submitted by BCBST to HHS in which it was reported that 57 unencrypted computer hard drives containing PHI of over 1 million individuals had been stolen from a leased facility in Tennessee. The enforcement action is the first resulting from a breach report required by the Health Information Technology for Economic and Clinical Health (HITECH) Act Breach Notification Rule.

Content created by Office for Civil Rights (OCR)
Content last reviewed on June 7, 2017