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Health Net loses data servers containing sensitive information for nearly 2 million subscribers Posted: March 15th, 2011

By Maryalene LaPonsie

For the second time in less than two years, California-based Health Net reports that customer names, addresses, social security numbers, health information and financial data may have been compromised. According to the California Department of Managed Health Care (DMHC), nine computer drives are missing from the health insurance company's data center in Rancho Cordova, Calif.

The DMHC reports the missing drives contain personal information for 1.9 million current and former Health Net medical insurance customers. In a Health Net press release, the insurance company indicated information regarding employees and health care providers may also be on the drives.

In response to the loss of information, Health Net is offering two years of free credit monitoring to those whose health insurance information was stored on the drives. Those affected will be notified by the insurer. Subscribers can also call 1-855-434-8081 for more information.

In 2009, an external hard drive containing data for 1.5 million members was lost or stolen from Health Net's Northeast headquarters in Connecticut. For that breach of security, the health insurance company paid a $375,000 fine to the Connecticut Insurance Department and a $250,000 fine to the state's Attorney General office.