N.D. Commissioner Not Satisfied with Humana Response on Security Thefts

June 26, 2006

North Dakota Insurance Commissioner Jim Poolman says attorneys will draft a proposed order to be sent to a company next week in response to the theft of personal information from some of its customers.

Poolman said the names, addresses and Social Security numbers and other information from about 150 North Dakotans were affected by two Humana, Inc., security breaches.

Humana, based in Louisville, Ky., is one of the nation’s biggest providers of Medicare prescription drug plans, which are marketed to people 65 years old and older.

The company should provide free credit protection to the affected customers for five years, Poolman said. Humana has so far agreed to only one year of protection, he said, and identity thieves could wait out the year.

We don’t think that’s adequate, Poolman said.

The federal Center for Medicare and Medicaid Service earlier said it would require Humana to provide free access to a credit monitoring service for one year and submit a plan to prevent further privacy violations. Humana officials have said they would counsel employees on privacy issues and strengthen computer maintenance polices.

Poolman also is asking Humana to cover any monetary losses to customers as a result of the identity theft.

He said attorneys will draft a proposed consent order that will be sent to Humana early next week and if Humana refuses to comply, the case will go to an administrative law judge.

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