Lance's Corner

NYSAG Takes Action Against HealthAlliance for Patient Data Breach

Dec 9, 2024

Per the notice below, the New York State Attorney General (NYSAG) has taken action against HealthAlliance for failing to protect patient data.

Attorney General James Secures $550,000 from Hudson Valley Health Care Facility Operator for Failing to Protect Patient Data

HealthAlliance’s Data Breach Compromised the Personal and Medical Data of Over 240,000 New Yorkers

New York Attorney General Letitia James today secured $550,000 from a Hudson Valley health care facility operator, HealthAlliance, for failing to properly protect the personal and medical information of New Yorkers.  An investigation by the Office of the Attorney General (OAG) found that the health care facility did not address a weakness in its system that was raised by one of its vendors, leading to a cyber-attack that compromised the personal and medical information of 242,641 HealthAlliance patients.  As a result of today’s agreement, HealthAlliance is required to pay $550,000 in penalties and strengthen its data security practices, including by immediately addressing any weaknesses in its systems when it is notified of a vulnerability.

“HealthAlliance provides essential health care services to New Yorkers, but it also has a responsibility to protect private medical information as part of its patient care,” said Attorney General James.  “No one should have to worry that when they seek medical care, they are putting their private information in the hands of scammers and hackers.  Every company that is entrusted by New Yorkers with personal information, especially financial and medical data, must take necessary precautions to ensure their systems are not vulnerable to cyberattacks.”

HealthAlliance operates healthcare facilities in Ulster and Delaware counties, including HealthAlliance Hospital in Kingston, Margaretville Hospital in Margaretville, and Mountainside Residential Care Center in Margaretville.  In July 2023, a HealthAlliance vendor for its web applications released a cybersecurity alert and instructed its clients to take action to patch a vulnerability in its system.  While HealthAlliance was aware of the vulnerability, it was unable to apply the patch due to technical issues.  Instead of taking the product offline, it continued to operate it with the vulnerability while it worked with support teams to diagnose and address the problem.  Between September and October 2023, cyber-attackers were able to infiltrate the vulnerability in HealthAlliance’s system and steal sensitive information, including patient records and employee information.  In response, HealthAlliance commenced a forensic investigation and replaced its devices with new ones that had been successfully patched for the vulnerability.  The forensic investigation revealed that the cyber-attackers had exploited the vulnerability and exfiltrated data that included the personal and medical information of 242,641 New York residents.  The data stolen by the threat actors included patient names, addresses, dates of birth, Social Security numbers, diagnoses, lab results, medications, and other treatment information, health insurance information, provider names, dates of treatment, and/or financial information.  As a result of today’s agreement, HealthAlliance agreed to pay a $1,400,000 penalty, of which $850,000 will be suspended because of HealthAlliance’s financial condition and its role in providing essential health care services to New Yorkers in underserved areas.  In addition, HealthAlliance agreed to adopt a series of procedures designed to strengthen its cybersecurity practices going forward, including:

  • Maintaining a comprehensive information security program designed to protect the security, confidentiality, and integrity of private information;
  • Developing and maintaining data inventory to ensure all private information is stored in accordance with data security and privacy policies, including appropriate encryption;
  • Maintaining and enforcing a patch management policy that requires that critical vulnerabilities are patched within 72 hours or that the associated vulnerability is neutralized; and
  • Adopting a series of additional security measures to restrict and monitor network activity.

Today’s agreement continues Attorney General James’ efforts to protect New Yorkers’ personal information and hold companies accountable for inadequate data security practices.  In October 2024, Attorney General James secured $2.25 million from a Capital Region health care provider, AENT, for failing to protect patients’ data.  In August 2024, Attorney General James and a multistate coalition secured $4.5 million from a biotech company for failing to protect patient data.  In July 2024, Attorney General James launched two privacy guides, a Business Guide to Website Privacy Controls and a Consumer Guide to Tracking on the Web, to help businesses and consumers protect themselves.  In July 2024, Attorney General James issued a consumer alert to raise awareness about free credit monitoring and identity theft protection services available for millions of consumers impacted by the Change Healthcare data breach.  In March 2024, Attorney General James led a bipartisan coalition of 41 attorneys general in sending a letter to Meta Platforms, Inc (Meta) addressing the recent rise of Facebook and Instagram account takeovers by scammers and frauds.  In January 2024, Attorney General James reached an agreement with a Hudson Valley health care provider to invest $1.2 million to protect patient data.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc