[TFL] SAIC Is On The Financial Hook For Theft Of 4.9 Million Health Records

From: TFL Mailing List
To: <HEALTH.MIL@xxxxxxxxxxxxx>, <TFL@xxxxxxxxxxxxx>
Date: Wed, 5 Oct 2011 09:49:25 -0500
SAIC Is On The Financial Hook For Theft Of 4.9 Million Health Records
 
By Bob Brewin 10/04/2011
 

Science Applications International Corp (SAIC) will have to pay for costs
associated with notifying 4.9 million beneficiaries whose personal information
was recorded on backup computer tapes stolen in September, the military's
health-care program TRICARE confirmed Tuesday.

The tapes contained health information and other data that could be used in
identity theft and fraud, including Social Security numbers, addresses and phone
numbers. The tapes were stolen from the car of an SAIC employee in San Antonio
last month.

Austin Camacho, a TRICARE Management Activity spokesman, said in a statement
emailed to Nextgov that SAIC is "contractually bound to mitigate the harmful
effects of such disclosure. SAIC has already started these mitigation efforts,
including individual notification of those impacted."

Camacho added that SAIC's mitigation operation relieves TRICARE of the cost of
handling the notifications.

SAIC spokesman Vernon Guidry had said on Monday the company would operate call
centers and mail out theft notifications at no cost to the government.

Larry Ponemon, chairman of Ponemon Institute, a research organization that
specializes in privacy and data protection, estimated mail notification could
run as high $7 per person, which means SAIC could face a bill of $34.7 million
to notify all 4.9 million TRICARE beneficiaries.

The 2009 Health Information Technology for Economic and Clinical Health Act,
enacted as part of the 2009 American Recovery and Reinvestment Act, specifies
fines as high as $1.5 million for what it calls a breach of health care data.

Camacho said, "The Department of Health and Human Services has the discretion to
investigate the conduct of both the TRICARE Management Activity and SAIC and
assuming it does so will ultimately make the determination as to whether and
against whom it seeks to levy any penalties."

NOTE:  Comments about the above article may be posted at
http://www.nextgov.com/nextgov/ng_20111004_4282.php?oref=rss

-------
SOURCE:  NexGov News Article
http://www.nextgov.com/nextgov/ng_20111004_4282.php?oref=rss



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[TFL] SAIC Is On The Financial Hook For Theft Of 4.9 Million Health Records

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