News in brief - Oct 31, 2011

Defense Dept. sued over data breach

The U.S. Dept. of Defense is facing a $4.9 billion class-action lawsuit filed by four people affected by the loss of computer tapes belonging to Tricare, the federal government's health care coverage for active and retired military personnel and their families.

The tapes allegedly were lost by an employee of Science Applications International Corp., a Tricare vendor not named in the suit. They contained the records of patients seen at San Antonio-area military treatment facilities, or who had lab workups processed in the facilities, from 1992 through Sept. 7. The data may include Social Security numbers, addresses and phone numbers. They also could include health data such as clinical notes, lab tests and prescriptions. No financial data are on the tapes.

The lawsuit, filed in U.S. District Court in Washington, seeks damages for all 4.9 million individuals affected by the breach.

Tricare had no response to the lawsuit, based on its policy of not speaking about pending litigation. SAIC admitted fault on the breach and reported it to Tricare. No remediations have been announced.

Tricare said any remediations for affected patients will be the responsibility of SAIC.

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Calif. Blues plan uses $20 million of excess profit to fund ACOs

After pledging to limit its net income to 2% of revenue, Blue Shield of California has found a home for the extra money -- hospitals, health systems, medical groups and clinics working toward establishing accountable care organizations.

The insurer announced on Oct. 17 that it will award 18 organizations a total of nearly $20 million, drawn from its income in excess of 2% of revenue for 2010 and 2011.

Recipients of the awards include Physicians Medical Group of Santa Cruz, Doctors Medical Center of Modesto, HealthCare Partners Affiliates Medical Group, Chinese Community Health Care Assn., Hill Physicians Group and Catholic Healthcare West.

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