WellPoint Paying $100K Settlement To State

Attorney General Greg Zoeller says the situation should be a teaching moment for all companies.

Statehouse side 624 416

Photo: Dan Goldblatt (WFIU News)

WellPoint will also reimburse any customers who became victims of identity theft.

WellPoint, a national health benefits company, reached a settlement with the Indiana Attorney General’s office in a lawsuit over a data breach that includes a $100,000 payment to the state.

Over a roughly five month period between 2009 and 2010, WellPoint allowed individual insurance policy applicants’ personal information – including social security numbers and financial and health records – to be accessible on an unsecured website. After receiving consumer complaints about the issue, WellPoint secured the site, but did not inform state authorities of the potential breach, a violation of Indiana law.

The state later filed suit against the company and Monday announced a settlement. Attorney General Greg Zoeller says the situation should be a teaching moment for all companies.

“If they suffer a data breach and private information is inadvertently released,” he said, “they must notify the Attorney General’s office and consumers promptly.”

The $100,000 will be used by the state to help those who suffered fraud. The settlement also includes up to two years of credit monitoring and identify theft protection for consumers affected by the breach, as well as up to $50,000 in reimbursement to any customers defrauded as a result, all provided by WellPoint. The data of about 32,000 Hoosiers was exposed, but only one consumer has reported potential identity theft so far.

Dan Goldblatt

Dan Goldblatt is the Multi-media Producer for WFIU/WTIU News. A graduate of Indiana University, he studied journalism and anthropology. He currently lives in Bloomington with his cat, June Carter.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Politics Stories

Recent Videos

Find Us on Facebook