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Health Law Highlights

Cybersecurity Policy – Developments to Watch

Summary of article from FiscalNote, by Nicole D’Angelo:

Cybercrime costs are projected to rise from $9.22 trillion in 2024 to $13.82 trillion by 2028, with new threats emerging due to advancements in technology, particularly AI. Governments are increasingly focusing on cybersecurity, with several key legislations proposed in 2024, including the Healthcare Cybersecurity Improvement Act and the Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) in the US, and the EU AI Act, Network and Information Security 2 Directive (NIS2), and Digital Operation Resilience Act (DORA) in the EU. The rise of AI is also leading to new cybersecurity risks, with governments focusing on ensuring AI systems are secure and ethical. The concept of “Security by Design” is gaining traction, encouraging developers to integrate security measures into new products. The Cybersecurity and Infrastructure Security Association (CISA) is offering support to high-risk sectors, such as healthcare and education, to help them mitigate sophisticated cyberattacks.

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Health Law Highlights

HHS Agency Launches Program to Improve Cyber Resiliency in Hospitals

Summary of article from The HIPAA Journal, by Steve Adler:

The Advanced Research Projects Agency for Health (ARPA-H), a Department of Health and Human Services (HHS) agency, has initiated a cybersecurity program aimed at enhancing and automating cybersecurity in U.S. hospitals. The program, called Universal PatchinG and Remediation for Autonomous DEfense (UPGRADE), will invest over $50 million to develop software tools to bolster network defenses against cyberattacks. The software will help identify and mitigate vulnerabilities in hospital systems, intending to reduce the time devices remain vulnerable from several months to a few days. ARPA-H is seeking proposals for the creation of a vulnerability mitigation platform, development of digital twins of hospital equipment, and methods for auto-detecting vulnerabilities and auto-developing defenses. The UPGRADE program is part of HHS’s broader strategy to improve cyber resilience across the healthcare sector.

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Health Law Highlights

OCR HIPAA Audit Program to Commence in 2024

Summary of article from The HIPAA Journal, by Steve Adler:

The Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009 mandates periodic audits of HIPAA-regulated entities by the Office for Civil Rights (OCR) to assess HIPAA compliance, with a focus on the HIPAA Security Rule. OCR has confirmed that audits will be conducted in 2024. The increasing rate and scale of data breaches suggest inadequate compliance with the HIPAA Security Rule among healthcare organizations. OCR aims to improve future audit programs and cybersecurity across the healthcare sector, with a particular focus on risk analysis and management provisions of the HIPAA Security Rule. OCR is working on an update to the HIPAA Security Rule, expected to be finalized by the end of the year, to reflect changes in technology and working practices, including the adoption of cloud technology, encryption, and multifactor authentication.

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Health Law Highlights

A Comprehensive Guide to Creating a Sustainable Cookie Program

Summary of article from IAPP, by Jodi Daniels, CIPP/US:

Managing cookies is essential for compliance with privacy and data protection laws worldwide. Establishing a cookie governance program involves designating roles for program leadership, creating a comprehensive policy for cookie use and removal, and implementing systems to manage user consent. Regular audits and privacy impact assessments for new cookie use are necessary to ensure ongoing compliance. Employees should be trained on the cookie program and privacy practices, and privacy notices must accurately reflect the company’s cookie practices. As technologies and privacy laws evolve, businesses should regularly review and update their cookie governance program to maintain compliance.

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Health Law Highlights

UnitedHealth Paid Hackers $22 Million Ransom

Summary of article from CNBC, by Ashley Capoot:

UnitedHealth Group confirmed the company paid a $22 million ransom after hackers breached its subsidiary, Change Healthcare, affecting the healthcare sector broadly. The breach left many doctors unable to fill prescriptions or get paid for their services temporarily. Witty revealed that the cybercriminals accessed Change Healthcare through a server that lacked multi-factor authentication, a security measure now implemented across all UnitedHealth’s external-facing systems. The breach compromised files containing protected health information and personally identifiable information, with a data review ongoing. UnitedHealth is working with regulators to assess the breach and notify affected individuals, while also implementing measures to prevent future cyberattacks.

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Health Law Highlights

Rehab Hospital Chain Hack Affects 101,000; Facing 6 Lawsuits

Summary of article from GovInfo Security, by Marianne Kolbasuk McGee:

Ernest Health, a Texas-based operator of rehabilitation hospitals, is facing multiple federal proposed class action lawsuits following a ransomware attack that potentially compromised the sensitive information of over 101,000 individuals across several states. The company reported 33 separate breaches involving a network server and a HIPAA business associate at rehabilitation and long-term care hospitals in 12 states. The lawsuits allege that Ernest Health’s negligence in failing to protect sensitive personal information puts the plaintiffs at risk of identity theft and other crimes. The compromised information includes names, addresses, birthdates, medical record numbers, health insurance plan member IDs, claims data, diagnosis, and prescription information, with some Social Security numbers and driver’s license numbers also affected. In response to the incident, Ernest Health has implemented additional safeguards and technical security measures to further protect and monitor its systems.

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Health Law Highlights

How Pharmacies Can Protect Patient Data From Cyber Threats

Summary of article from Specialty Pharmacy Continuum, by Karen Blum:

Pharmacies, both large and small, are increasingly targeted by sophisticated cyberattacks due to their databases of patient financial and health information. The breaches can lead to identity theft and drug diversion, with hackers using advanced tactics to gain access to data. To mitigate these risks, pharmacies should establish a robust cybersecurity plan, keep it updated, and conduct regular staff training. Vetting vendors for their data protection measures and having a contingency plan for data breaches are also crucial. In case of a breach, pharmacies should comply with all legal requirements, including notifying affected individuals and the Federal Trade Commission.

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Health Law Highlights

Health Care Giant Comes Clean About Recent Hack and Paid Ransom

Summary of article from Ars Technica, by Dan Goodin:

Change Healthcare, a US health care services provider, was attacked by ransomware group ALPHV or BlackCat, disrupting the US prescription market for two weeks. The breach occurred due to a compromised account that lacked multifactor authentication (MFA), allowing hackers to access and exfiltrate data. The company paid a ransom of $22 million to ALPHV and spent two weeks rebuilding its IT infrastructure. The attack resulted in a cost of $872 million in the first quarter, leading to accelerated payments and no-interest, no-fee loans of over $6.5 billion to affected providers. Currently, the company’s payment processing is at 86% of its pre-incident levels.

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Health Law Highlights

HIPAA Update to Include Cybersecurity Requirements for Health Care Organizations

Summary of article from Renal and Urology News, by John Schieszer:

The Department of Health and Human Services (HHS) is updating the Health Insurance Portability and Accountability Act (HIPAA) Security Rule to include new cybersecurity requirements, in light of increasing cyber threats to the healthcare sector. The HHS has issued a concept paper providing voluntary Cybersecurity Performance Goals (CPGs) to help healthcare organizations improve their cyber resilience. A significant rise in data breaches and ransomware attacks has been observed, emphasizing the need for improved cyber protection. The HHS is planning to establish two programs to aid healthcare providers in implementing these CPGs, one of which involves financial aid for high-need providers. Additionally, changes to the HIPAA Security Rule may include allowing patients more direct access to their Protected Health Information (PHI) and potential privacy concerns are being addressed.

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Health Law Highlights

Security Principles: Addressing Vulnerabilities Systematically

Summary of article from Federal Trade Commission, Office of Technology:

The FTC has been enforcing national consumer protection laws for over two decades, focusing on companies with inadequate security practices such as failing to encrypt sensitive data and not using multi-factor authentication. The FTC and the Cybersecurity and Infrastructure Security Agency (CISA) recommend practices like root-cause analysis of vulnerabilities, using template rendering systems for Cross-Site Scripting (XSS) vulnerabilities, query builders for SQL injection vulnerabilities, and memory-safe programming languages for buffer overflows and use-after-free vulnerabilities. CISA’s Secure by Design Alert Series offers additional strategies to protect systems from design issues leading to security incidents. The FTC asserts that companies have a legal obligation to protect consumers’ data, with violations leading to enforcement actions.