By Dow Jones Business News,
February 18, 2014, 02:06:00 PM EDT
By Anna Prior
Triple-S Management Corp. said the Puerto Rico Health Insurance Administration plans to impose a $6.8 million
penalty related to a security breach at the health insurer's subsidiary, Triple-S Salud Inc., or TSS.
In a filing with the Securities and Exchange Commission on Tuesday, Triple-S said the monetary penalty and other
administrative sanctions--including the suspension of all new enrollments of Dual Eligible Medicare beneficiaries and
the obligation to notify those affected of their right to disenroll--stemmed from a breach involving 13,336 of the
company's Dual Eligible Medicare beneficiaries.
The Puerto Rico Health Insurance Administration alleged that Triple-S failed to take all required steps in response
to the breach, the company said.
Last September, TSS mailed a pamphlet that inadvertently displayed some recipients' Medicare Health Insurance Claim
Number, a unique number assigned by the Social Security Administration that is considered protected health information,
the company said.
TSS conducted an investigation and reported the incident to Puerto Rico and federal government agencies, and
complied with the Puerto Rico Health Insurance Administration's requests for information concerning the company's Dual
Eligible Medicare beneficiaries, Triple-S said, adding that TSS took additional steps, including issuing a breach
notification through the local media and notified all affected beneficiaries by mail regarding the situation.
"We take this matter very seriously and are working to prevent this type of incident from happening again," said
Triple-S in the filing, adding that currently it is unable to assess the financial impact of this incident on TSS and
cannot estimate the impact of the sanctions.
The company said TSS is preparing its response to the Puerto Rico Health Insurance Administration and has the right
to request an administration hearing.
Shares rose 3.9% to $16.15 in recent trading. The stock has fallen 14% in the last 12 months.
Write to Anna Prior at firstname.lastname@example.org
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