How Can Companies Protect Themselves in the Wake of Anthem-sized Data Breaches?
In the wake of the recent disclosure of the largest security breach in America at major insurance carrier Anthem, companies are increasingly worried about outside hackers. Yet, data breaches often come from within, and whether intentional or unintentional, companies are liable. The new rule under the Health Insurance Portability and Accountability Act, Health Information Technology for Economical and Clinical Health Act (HIPAA HITECH) expands liability for violations beyond businesses to include employees and third party vendors of the health care entity and substantially increases civil and criminal penalties. What precautions should companies take to protect their clients and employees?