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UPDATE: Risks beyond ARRA, HITECH and HIPAA: PHI = $1,000 per individual = $4.9 Billion charge to TriCare

This is an example of a “hole” allowing unencrypted backup tapes to leave the facility and led to one of the largest ePHI breaches in history.

Had they a solid HIPAA Risk Analysis covering encryption and ePHI disclosure policies, this breach would not had been a breach.  Or shown due diligence to help convince the judge of their intent on protecting those ePHI records.

Tricare in Texas has a class action lawsuit filed last week initiated by a solder on the list for a total of $4.9 Billion!!  They claim the average cost of fraud per person (i.e. breached file) is $1,000 per person.  1,000 times $4.9 Million breached records is $4.9 Billon.

Click here to view media press.

The backup tapes would require specific hardware and software to be used however, “security by obscurity” apparently doesn’t hold up in society.

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