Delaware Insurance Commissioner fines Blue Cross $150,000 for privacy violations

Keith L. Martin reports:

BlueCross BlueShield of Delaware is hoping to return an early Christmas gift by state insurance commissioner Matt Denn: a fine of $150,000.

Following a Dec. 24 hearing, Denn levied the fine, the maximum permitted under state law, against the Wilmington, Del.-based insurer for mistakenly disclosing the private medical information of 3,800 of its members. [see here]

Denn said his department is willing to consider reducing the fine if BlueCross can provide proof of measures in place to prevent the incident from occurring again before Feb. 1.

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