Judge William K Sessions has approved Attorney General William Sorrell’s proposed settlement with Health Net, Inc., and Health Net of the Northeast, Inc., regarding the health insurance company’s loss of an unencrypted portable hard drive containing protected health information. The State’s complaint alleged violations of HIPAA (the Health Insurance Portability and Accountability Act), Vermont’s Security Breach Notice Act, and Consumer Fraud Act. The settlement approved by the court on Friday requires the defendants to pay $55,000 to the State, submit to a data-security audit, and file reports with the State regarding the company’s information security programs for the next two years.The lawsuit is Vermont’s first enforcement action under the Security Breach Notice Act and the second HIPAA enforcement action of its kind since state attorneys general were given HIPAA enforcement authority in 2009. The case arises from a portable hard drive that contained protected health information, social security numbers, and financial information of approximately 1.5 million people, including 525 Vermonters. Health Net discovered that the drive was missing on May 14, 2009 and did not start notifying affected Vermont residents until more than six month later. When it did notify Vermont residents, Health Net told them that it believed their risk of harm was ‘low’ because ‘the files on the missing drive were not saved in a format that can be easily accessible.’ The files on the unencrypted drive were in TIF (Tagged Image File) format, which can be viewed using a variety of freely available software.Health Net, Inc., and Health Net of the Northeast, Inc., cooperated with the Vermont Attorney General’s investigation of this matter and have settled similar actions in Connecticut and New York. January 26, 2011
Surviving are his two sons, Kenny (companion Chantel Aders) Reed of Osgood, and Danny Reed of Richland; 34 grandchildren; 8 great-grandchildren; brothers, Buck (Pat) Miller of Greensburg, Ray Miller of Connersville, and Robert Miller of Florida; one sister Geraldine (Delbert) Allen of Laurel, and several nieces and nephews. In addition to his parents and wife, he was preceded in death by sons, William, Michael, Gary and infant son, Reed. Friends may visit with Clemon’s family on Tuesday, December 17, 2019 from 11a.m. until 1p.m. at Cook Rosenberger Funeral Home, 929 Main Street, Brookville, with services beginning at 1p.m. Burial will follow in Metamora Cemetery with military graveside honors provided by the American Legion Bernard Hurst Post #77. Memorial donations can be directed to Margaret Mary Hospice. To sign the online guestbook or to leave a personal condolence, please visit www.cookrosenberger.com. The staff of Cook Rosenberger Funeral Home is honored to care for the family of Clemon Reed. Clemon Reed, age 91, of Laurel, was born on November 1, 1928 in Hamilton, Ohio a son to William and Ruth Blanton Reed. He served his country with the United State Army. Clemon later married Helen Edington and she preceded him in death in 1965. He worked maintenance at H&H Robinson and was a member of the Brookville American Legion and the Metamora Masonic Lodge. He enjoyed hunting, fishing, and being outdoors. His family remembers him as a very active man who also became certified as a T.V. repair man and was artistic – drawing and doing calligraphy. On Thursday, December 12, 2019 Clemon passed away at his residence surrounded by loving family.