Update on the alleged loss of a CD containing member data

FOR IMMEDIATE RELEASE 

March 14, 2007 

Media Contact:  

Lisa Greiner (212) 476-7011 

Cell phone: 646-957-4312  

 

Update on the alleged loss of a CD containing member personal health and identity information: 

Empire Blue Cross Blue Shield was just informed that Magellan Behavioral Health Services has located the CD sent via UPS by Health Data Management Solutions (HDMS), a third party vendor to Magellan, an Empire benefit program administrator, that included some members’ personal health information. The CD was lost in transit and was located this afternoon. 

Although there was no indication that the CD had been stolen, last week Empire sent a letter to inform affected groups and members who may have been impacted. While we understood it was possible the CD would be found, to be cautious, Empire accelerated member notification as our members’ security and trust are our highest priority. 

We are relieved the CD has been found. The information was not transferred in accordance to our contractual terms with Magellan, who did not require HDMS to encrypt or password protect the data. We are addressing these issues and we have made it clear to both HDMS and Magellan that their security practices with respect to the data transfer were unacceptable. As a result, Magellan will now only transmit personal health information electronically through a secure network, eliminating CDs and the use of a delivery service. 

The security of our members' personal information is a serious matter and of the utmost concern to our company. We will continue to investigate this incident and use related learnings to further strengthen our standards of security as necessary. Members who may have questions can continue to call the toll free number, 800-293-3443, established to answer questions or concerns they may have regarding this issue. 

Additional media inquiries regarding this incident should be addressed to Erin Sommers, Vice President of Public Relations, Magellan Behavioral Health Services, at (410) 953-2405. 

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Empire Blue Cross Blue Shield, the largest health insurer in New York State based on PPO and HMO membership, is a subsidiary of WellPoint, Inc. WellPoint’s mission is to improve the lives of the people it serves and the health of its communities. WellPoint, Inc. is the largest health benefits company in terms of commercial membership in the United States. Through its nationwide networks, the company delivers a number of leading health benefit solutions through a broad portfolio of integrated health care plans and related services, along with a wide range of specialty products such as life and disability insurance benefits, pharmacy benefit management, dental, vision, behavioral health benefit services, as well as long term care insurance and flexible spending accounts. Headquartered in Indianapolis, Indiana, WellPoint is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as Empire Blue Cross Blue Shield in 10 New York City metropolitan and surrounding counties and as Empire Blue Cross or Empire Blue Cross Blue Shield in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through UniCare. Additional information about WellPoint is available at www.wellpoint.com.