ISR News: HIPAA Has New Teeth

February 19, 2009 by ADMIN
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Excerpts From SearchSecurity.com

CVS Caremark Corp has agreed to pay $2.25 million to settle a federal investigation into allegations that it violated HIPAA privacy regulations when pharmacy employees threw items such as pill bottles with patient information into the trash.

Employees allegedly tossed pill bottles with labels containing patient information into open Dumpsters, along with medication instruction sheets, pharmacy order information, employment applications, payroll data, and credit card and insurance card information.

According to the FTC, CVS Caremark violated federal laws by failing to implement reasonable and appropriate procedures for handling personal information about customers and employees and did not adequately train employees on secure disposal of personal information.

“It gives much more teeth to compliance and enforcement,” Borten said of the new rules. “The government is ratcheting up pressure in healthcare and other organizations to protect sensitive data and keep it out of the hands of criminals.”

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Filed under: Breach, Financial, ISR News, Insider Threat, Uncategorized, hackers, healthcare, identity-theft, malware, privacy 

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