Connecticut Attorney General William Tong urged residents to enroll in free credit monitoring and identity theft protection following the Change Healthcare cyberattack in February 2024, which exposed sensitive health data. The breach potentially impacted up to one-third of Americans, but Change Healthcare has failed to provide individual notice to affected consumers. The AG joined other attorneys general in April 2024 to demand that UnitedHealth Group take more meaningful action to protect those harmed.
In-house legal teams should immediately review all Business Associate Agreements (BAAs) under HIPAA and vendor contracts with Change Healthcare (or its parent UnitedHealth Group) where health data is processed, stored, or transmitted. Specific clauses to scrutinize include: data breach notification timelines and methods (given the failure to provide individual notice), indemnification provisions for breach-related liabilities, mandatory cybersecurity standards and incident response obligations, audit and oversight rights, and termination clauses for non-compliance. Contracts may need amendments to enforce stricter notification deadlines (e.g., within 72 hours), require provision of free credit monitoring for affected individuals, mandate enhanced security controls like encryption and multi-factor authentication, and clarify liability allocation for breaches involving protected health information.
Entity
Change Healthcare
Industry
Healthcare"Change Healthcare, a unit of UnitedHealth, is the nation’s biggest electronic data clearinghouse."
"Data breaches involving PHI are required to be reported to the U.S. Department of Health & Human Services - Office for Civil Rights (hhs.gov) by HIPAA-covered entities."
"The February cyberattack interrupted operations for thousands of doctors’ offices, hospitals, and pharmacies. It also resulted in Americans’ sensitive health and personal data being leaked onto the dark web - a hidden portion of the Internet where cyber criminals buy, sell, and track personal information."
"However, Change Healthcare has not yet provided individual notice to consumers."
"In April, Attorney General Tong joined other attorneys general in sending a letter to UnitedHealth Group, Inc. — the nation's largest health insurer and the parent company of Change Healthcare — urging the corporation to take more meaningful action to better protect providers, pharmacies, and patients harmed by the recent breach."
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.