Blue Cross Blue Shield class action claims insurer shared medical info with third parties

Blue Cross Blue Shield class action lawsuit overview:

• Who: Five plaintiffs have filed a class action lawsuit against Blue Cross Blue Shield Association.
• Why: Blue Cross Blue Shield allegedly disclosed federal employees’ medical information to third parties without consent.
• Where: The Blue Cross Blue Shield class action lawsuit was filed in Illinois federal court.

Five plaintiffs have sued Blue Cross Blue Shield Association after the health insurance company allegedly disclosed federal employees’ medical information to third parties without consent.

Plaintiffs Teresa Gouch, Denise Spanos, George Amerson, Kyle Mummey and Marcia Beasley filed the class action lawsuit on Nov. 7 in Illinois federal court.

They claim Blue Cross Blue Shield utilized tracking technology that allowed third-parties such as the Chinese-owned social media company TikTok to intercept federal employees’ communications with the insurer and use the data to sell targeted advertising or otherwise monetize the information.

Blue Cross Blue Shield class action says third parties could learn about employee health care

Blue Cross Blue Shield allows third-party access to this information “despite the U.S. government’s far-reaching efforts to prevent the disclosure of sensitive government information to TikTok by banning the popular social media app on official government devices and systems,” the plaintiffs allege.

The Blue Cross Blue Shield class action lawsuit explains that TikTok has been banned on official government devices due to its “aggressive data-collection practices” and its ties to China for certain federal employees and contractors.

Blue Cross Blue Shield’s unauthorized disclosure of federal employees’ sensitive data allegedly allowed third parties such as TikTok to identify and know that specific federal employees were seeking medical care or being treated for a specific condition, the plaintiffs allege.

They claim they never provided consent for this type of data-sharing and have suffered harm such as invasion of privacy and emotional distress due to the loss of their sensitive data.

The plaintiffs seek to represent themselves and a proposed class of federal employees, retirees and their family members affected by the unauthorized disclosure of personal health information (PHI) and personally identifiable information (PII) to TikTok and other third parties.

The class action lawsuit asserts claims for violations of the Electronic Communications Privacy Act, the Illinois Eavesdropping Statute, the Illinois Computer Tampering Act and the California Invasion of Privacy Act, as well as negligence, invasion of privacy, breach of implied contract and unjust enrichment.

The 11th U.S. Circuit Court of Appeals recently affirmed a $2.7 billion Blue Cross antitrust settlement of allegations the insurer had limited competition to drive up costs for its own health insurance subscribers.

What do you think about the allegations in the class action lawsuit? Tell us about it in the comments!

The plaintiffs are represented by David M. Cialkowski, Brian C. Gudmundson, Jason P. Johnston, Rachel K. Tack, Hart L. Robinovitch and Ryan J. Ellersick of Zimmerman Reed LLP.

The Blue Cross Blue Shield class action lawsuit is Teresa Gouch, et al. v. Blue Cross Blue Shield Association, Case No. 1:23-cv-15709, in the U.S. District Court for the Northern District of Illinois.

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