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

Keith L. Martin provides a follow-up to a breach reported at the beginning of December. Delaware’s insurance commissioner seems to have moved quickly on this case:

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.

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.


In his opinion, Denn found that the insurer violated two state insurance regulations: one that prohibits disclosure of “any nonpublic personal financial information about a consumer” and another that requires insurers to have a system to safeguard customer information.

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