Premera Blue Cross Hit With Data Breach Class Action Lawsuit

A group of Washington residents has initiated a data breach class action lawsuit against Premera Blue Cross over a data breach that resulted from a recent cyber attack.

Plaintiffs Maria W., Shana G., and Mark F. all received healthcare coverage from Premera from as late as January 2014 through the time of the cyber attack in May 2014, they claim in their Premera data breach class action lawsuit.

All three plaintiffs allege their sensitive personal information was exposed in the attack. Maria alleges she has already been the victim of fraud resulting from the attack. In November 2014, she discovered someone had opened several cell phone accounts in her name and had run up a credit bill of about $700.

The Premera Data Breach

As a provider of health plans for federal employees, Premera is subject to periodic audits of their cyber security systems by the federal Office of Personnel Management, or OPM.

In April 2014, one month before the data breach, the OPM notified Premera that an investigation of Premera’s security practices found 10 areas of vulnerability in Premera’s data breach security systems. It noted that Premera was using outdated software, some of which was no longer supported by its vendors, and that Premera was also not promptly installing software patch updates meant to address security problems. In addition, Premera’s operating system configurations were insecure. The OPM recommended Premera address those vulnerabilities immediately.

Premera responded at first saying it would address these issues by the end of December 2014. Later, in November 2014, Premera stated that they would make no changes to their software patch update procedures.

On May 5, 2014, only a few weeks after the OPM’s warning, hackers broke into Premera’s computer systems and installed malware that siphoned off the sensitive information of about 11 million people who had done business with Premera between 2002 and 2015.

This group of affected persons included both Premera policy holders and also non-Premera Blue Cross policy holders who received medical treatment in Washington or Alaska. The malware remained active on Premera’s systems at least until January 2015, and possibly longer.

Premera did not begin to notify affected consumers of the breach until March 2015. Some potentially affected persons say they have not yet received notification.

The data breach class action lawsuit alleges Premera’s actions are a violation of the privacy provision of the Health Insurance Portability and Accountability Act of 1996, commonly known as the HIPAA privacy rule. The Premera class action lawsuit lawsuit further alleges violation of Washington’s Uniform Health Care Act.

Plaintiffs allege Premera failed to disclose material information about its data breach security systems and the cyber attack itself. Plaintiffs allege they would have made a different choice in insurance providers had they been made aware of that information.

The class action lawsuit raises claims of violation of state data breach notification law, negligence, breach of contract, unjust enrichment, and invasion of privacy. In addition to monetary damages and attorney’s fees, the plaintiffs also seek injunctive relief that would require Premera to amend its data breach security practices and provide all class members with extended credit monitoring services.

This Premera Data Breach Class Action Lawsuit is Case No. 2:15-cv-00539, in the U.S. District Court for the Western District of Washington.

Join a Free Premera Blue Cross Data Breach Class Action Lawsuit Investigation

If you were insured by Premera and/or its affiliates between 2002 and Jan. 29, 2015, you may have a legal claim for compensation. This includes all individuals who fall into one of the following categories:

• Premera Blue Cross subscriber or applicant
• Premera Blue Cross Blue Shield of Alaska subscriber or applicant
• Vivacity applicant, customer, or member
• Connexion applicant, customer, or member
• Individuals “doing business” with Premera
• Members of other Blue Cross Blue Shield plans who sought treatment in Washington or Alaska
• Members of LifeWise Health Plan of Oregon and other Premera subsidiaries

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