Health System’s Data Breach Insurance Claims Get Challenged

What happens when a health system with liability insurance fails to secure protected health information of its patients and is hit with a $4.13 million class action settlement for it? The civil actions of one insurance company are suggesting the claims money doesn’t come easy if you fail to follow minimum required security practices. The three-hospital Cottage Health System in California back in December 2013 notified 32,755 of its patients whose protected health information had been compromised after the health system and one of its third-party vendors, inSync, stored unencrypted medical records on a system accessible to the Internet.