Business Services Industry

Loss of sensitive information prompts new data transfer agreement.(Spotlight: Information Security)(Brief article)

Business Insurance, May, 2007 by Lenckus, Dave

Byline: Dave Lenckus After recovering an unprotected compact disc containing sensitive data on 75,000 mental health patients, WellPoint Inc. negotiated a new data transfer agreement with the mental health claims administrator involved in shipping the CD. The CD, containing data on patients of WellPoint subsidiary Empire Blue Cross Blue Shield, was ground-shipped from Chicago to Philadelphia even though-in violation of WellPoint's data management protocols-the data was not encrypted and the CD was not password-protected.

Under the new agreement, the claims provider Magellan Health Services Inc. in Philadelphia and data management vendor Health Data Management Solutions in Chicago will only electronically transfer data, said Shamla Naidoo, chief information...

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