New Jersey Passes Law that Requires Health Insurance Companies to Encrypt Patient Information

miniature toy workers repairing computer keyboardIn January New Jersey Governor Chris Christie signed legislation that requires health insurance companies to encrypt personal patient information. All health insurance companies maintaining records that contain personal health information (PHI) must be protected by encryption or “by any other method or technology rendering it unreadable, undecipherable, or otherwise unusable by an unauthorized person,”.

This new law was prompted by recent attacks on Horizon Blue Cross Blue Shield of New Jersey (BCBSNJ) in which names, dates of birth, addresses, clinical records, and Social Security numbers
were compromised for over 840,000 individuals. As more data breaches occur we predict that more states will pass legislation to ensure personal health information is protected. The new norm will be mandated encryption.

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