Anthem Aftermath: Conn. Tackles Data Security Legislation

Law360, New York (March 17, 2015, 10:28 AM EDT) -- On Feb. 26, 2015, Bill No. 1024, titled "An Act Concerning the Security of Consumer Data," was introduced in the Insurance Committee of the Connecticut General Assembly. The bill requires health insurers, health care centers (a particular type of health insurer under Connecticut law that is akin to health maintenance organizations) and "other entities licensed to do health insurance business in Connecticut," pharmacy benefits managers, third-party administrators that administer health benefits, and utilization review companies to implement data security technology that encrypts the personal information of insureds and enrollees compiled or maintained by the entity. The phrase "other entities licensed to do health insurance business in Connecticut" is undefined in the bill and has the potential to be construed broadly, thereby effectively expanding the universe of entities to which this legislation could be deemed to apply....

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