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CA Department of Insurance

Insurance Commissioner Jones Calls On Health Net To Share Findings Of Investigation Into Privacy Breach

News: 2011 Press Release

For Release: March 15, 2011
Media Calls Only: 916-492-3566
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Insurance Commissioner Jones Calls On Health Net, Inc. To Share Findings Of Investigation Into Privacy Breach

Insurance Commissioner Dave Jones today requested that Health Net, Inc. forward the findings of its investigation into a recent privacy breach to the California Department of Insurance. Commissioner Jones also announced that he would conduct an independent follow-up investigation into whether the company did everything it could have done to avoid and appropriately remedy this security breakdown.

Health Net, Inc. announced yesterday that it had launched an investigation to determine the whereabouts of a number of server drives that were found to be unaccounted for at its data center in Rancho Cordova, California. The announcement came after IBM, the vendor that manages Health Net, Inc.'s information technology infrastructure, alerted the insurer that the server drives could not be located.

"I have been in constant contact with Health Net, Inc. on this matter, and I am pleased to see that the company is following protocol by notifying all the individuals affected by this privacy breach," Commissioner Jones said. "With identify theft crimes on the rise, it is more important than ever to act immediately and comprehensively in addressing a privacy breach. Although Health Net, Inc. has agreed to provide us with the findings of its internal investigation, I intend to conduct a follow-up investigation of the breach. In the meantime, policyholders should not hesitate to contact my department if they have been impacted by the breach."

After conducting a forensic analysis, Health Net, Inc. found that the personal information of some former and current members, employees, and health care providers is on the missing server drives. The information may include such details as names and addresses, health and financial information, and Social Security numbers. Health Net, Inc. is in the process of contacting all those individuals affected by the privacy breach.

Health Net, Inc.also announced that it will offer affected individuals two years of free credit monitoring services, the restoration of credit files, and insurance for identity theft. To find out more, please visit Health Net's web site at or call 1-855-434-8081.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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