Breach Notification Deadline is February 29th

By: Margaret Young Levi

Head’s up!  The deadline for notifying the Office for Civil Rights (OCR) of healthcare data breaches affecting fewer than 500 individuals is early this year.  Reports of small data breaches may be submitted to OCR annually, usually on March 1st, but because 2024 is a leap year, the reports are due on or before Thursday, February 29th

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HHS Proposed Rule Aligns Regulation on Confidentiality of Substance Use Disorder Treatment Records with HIPAA

by Kathie McDonald-McClure

UPDATE: On February 16, 2024, HHS published a Final Rule (89 Fed Reg 12472) to amend Part 2 rules on patient confidentiality of SUD records. While the Final Rule’s effective date is April 16, 2024, the deadline for compliance is February 16, 2026. Based on public comments to the Proposed Rule, HHS included further substantive modifications in the Final Rule, which HHS outlines in a Fact Sheet on the Part 2 Final Rule.

On November 28, 2022, the Secretary for the United States Department of Health & Human Services (HHS) released a Proposed Rule to amend the requirements in Title 42, Part 2, on confidentiality of substance use disorder (SUD) patient records in federally assisted Part 2 Programs.  Part 2 protects the confidentiality of SUD patient records (which generally include alcoholism, alcohol abuse, and drug abuse treatment and prevention records) by restricting the circumstances under which Part 2 Programs or other lawful holders can disclose such records.

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Apache Log4j Vulnerability in Java Applications May Pose Risk to Confidential Company and Personal Information

By: Kathie McDonald-McClure

On December 11, 2021, the United States Cybersecurity & Infrastructure Security Agency (CISA), issued a Statement regarding what it called a “critical vulnerability affecting products containing the log4j software library”.  This Statement emphasizes that end users are reliant on their vendors to inform them about the vulnerabilities and to develop patches to protect against the vulnerabilities.   Separately, CISA established a webpage for Apache Log4j Vulnerability Guidance that CISA is continually updating to impart further guidance and vendor information as they become available.  End users should be on the lookout for critical patches from their vendors.

According to the CISA Guidance, the Log4j vulnerability is being widely exploited by a growing set of malicious actors to steal information, launch ransomware attacks, or conduct other malicious activity such as taking over a company server to mine cryptocurrency.  At least 10 major technology vendors have issued statements that one or more of their products have been affected by the Log4j vulnerability: Cisco, IBM, VMware, Amazon Web Services (AWS), Fortinet, Broadcom, ConnectWise, HCL Connections, N-Able, and Okta.[1] On December 15, 2021, the Microsoft 365 Defender Threat Intelligence Team reported that a new family of ransomware, called Khonsari, is being deployed via the Log4j vulnerability on non-Microsoft hosted servers.

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KRONOS Payroll Ransomware Attack Implicates Potential Data Breach Notification Obligations

By: Kathie McDonald-McClure

UKG, Inc., a company that provides payroll support services known as KRONOS for many U.S. companies, began notifying its customers on December 12, 2021, that the KRONOS Private Cloud (KPC) had been attacked by ransomware.  (See UKG Kronos Private Cloud Status Updates.) The KPC products include Workforce Central, TeleStaff, Healthcare Extensions and Banking Scheduling Solutions. UKG reports that the KPC solutions may be unavailable for “several weeks.”  Affected companies are diligently working to find alternative solutions to process their payrolls in the interim. UKG has created a KPC Incident Resource Hub to assist customers impacted by the KPC disruption in services.

The American Hospital Association (AHA) reported that the ransomware attack has impacted many hospitals and health systems that rely on KRONOS for timekeeping, scheduling and payroll.  John Riggi, AHA’s Senior Advisor for Cybersecurity and Risk, said, “A lack of the availability of those services could be quite disruptive for health care providers, many of whom are experiencing surges of COVID-19 and flu patients. … This attack once again highlights the need for robust third-party risk management programs that identify mission-critical dependencies and downtime preparedness. … [W]e urge all third-party providers that serve the health care community to examine their cyber readiness, response and resiliency capabilities.” 

In addition to the immediate payroll issues, if the ransomware attack compromises employee personal information, then it may trigger a data breach notification for these employers under state breach notification laws. 

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