Tag Archives: Anthem Inc

Anthem to pay record $115 million to settle U.S. lawsuits over data breach

The office building of health insurer Anthem is seen in Los Angeles, California February 5, 2015. REUTERS/Gus Ruelas

By Brendan Pierson

(Reuters) – Anthem Inc <ANTM.N>, the largest U.S. health insurance company, has agreed to settle litigation over hacking in 2015 that compromised about 79 million people’s personal information for $115 million, which lawyers said would be the largest settlement ever for a data breach.

The deal, announced Friday by lawyers for people whose information was compromised, must still be approved by U.S. District Judge Lucy Koh in San Jose, California, who is presiding over the case.

The money will be used to pay for two years of credit monitoring for people affected by the hack, the lawyers said. Victims are believed to include current and former customers of Anthem and of other insurers affiliated with Anthem through the national Blue Cross Blue Shield Association.

People who are already enrolled in credit monitoring may choose to receive cash instead, which may be up to $50 per person, according to a motion filed in California federal court Friday.

“We are very satisfied that the settlement is a great result for those affected and look forward to working through the settlement approval process,” Andrew Friedman, a lawyer for the victims, said in a statement.

The credit monitoring in the settlement is in addition to the two years of credit monitoring Anthem offered victims when it announced the breach in February 2015, according to Anthem spokeswoman Jill Becher, who said the company was pleased to be resolving the litigation.

The Indianapolis-based company did not admit wrongdoing, and there was no evidence any compromised information was sold or used to commit fraud, Becher said.

Anthem said in February 2015 that an unknown hacker had accessed a database containing personal information, including names, birthdays, social security numbers, addresses, email addresses and employment and income information. The attack did not compromise credit card information or medical information, the company said.

More than 100 lawsuits filed against Anthem over the breach were consolidated before Judge Koh.

The breach is one of a series of high-profile data breaches that resulted in losses of hundreds of millions of dollars to U.S. companies in recent years, including Target Corp <TGT.N>, which agreed to pay $18.5 million to settle claims by 47 states in May, and Home Depot Inc <HD.N>, which agreed to pay at least $19.5 million to consumers last year.

(Reporting by Brendan Pierson in New York; Editing by Lisa Shumaker)

Anthem to leave Ohio’s Obamacare insurance market in 2018

FILE PHOTO: A sign at the office building of health insurer Anthem is seen in Los Angeles, California February 5, 2015. REUTERS/Gus Ruelas/File Photo

By Caroline Humer

(Reuters) – Anthem Inc, which has urged Republican lawmakers to commit to paying government subsidies for the Obamacare individual health insurance system, on Tuesday announced it would exit most of the Ohio market next year.

The high-profile health insurer, which sells Blue Cross Blue Shield plans in 14 states including New York and California, for months has said that uncertainty over the payments used to make insurance more affordable could cause it to exit markets next year.

Anthem CEO Joseph Swedish two weeks ago reiterated that the company was reviewing its participation in the individual markets that are a key piece of the Affordable Care Act, commonly called Obamacare.

Republican lawmakers and President Donald Trump have promised to repeal and replace the law, but have disagreed over the details, creating uncertainty at a time when insurers must submit plans and premium rates for 2018.

In addition, Republicans are trying to cut off these Obamacare subsidy payments in court proceedings and President Donald Trump has made conflicting statements about continuing paying them.

Insurance departments across the country have reported that insurers have submitted premium rate increases of up to 50 percent and 60 percent or even higher for 2018.

Anthem attributed the Ohio decision to volatility and uncertainty about whether the government would continue to provide cost-sharing subsidies. It said it would continue to sell Obamacare compliant plans outside of the exchange in Pike County, Ohio as well as other individual plans that were grandfathered when the law went into effect.

Anthem is the only insurer selling health insurance exchange products in all 88 Ohio counties in 2017 and the only insurer in 20 counties, according to Ohio Department of Insurance spokesman Chris Brock.

In 2018, the move would leave about 10,500 people in at least 18 counties with no insurer.

“Congressional action is needed to restore stability,” Brock said. The insurance department is looking for options for those affected, he said.

Other large health insurers have also pulled out for 2018, including Aetna Inc and Humana Inc, leaving other areas facing the possibility of no insurer.

Anthem’s decision was made as rate filings were due to the state and after discussions with the insurance department.

“States can beg and plead, but much of this is out of their hands,” said Larry Levitt, health economist at the Kaiser Family Foundation.

Anthem shares rose $1.19, or 0.64 percent, to $187.88 in early afternoon trading.

(Reporting by Caroline Humer in New York; editing by Jeffrey Benkoe and Andrew Hay)