If you recently received a notice regarding the HealthEC data breach, you may be entitled to financial compensation. A $2.9 million settlement has been reached to resolve a class action lawsuit following a security incident that occurred in 2023. This guide will walk you through the steps to file your claim, explain who is eligible, and detail the types of payments you can expect.
Understanding the HealthEC Data Breach
HealthEC LLC is a company that provides population health management solutions to various healthcare providers across the United States. Between July 14 and July 23, 2023, an unauthorized party gained access to certain files on HealthEC’s systems. This incident resulted in the potential exposure of sensitive personal and medical information.
The data involved in this breach varied by individual but may have included names, addresses, dates of birth, Social Security numbers, and medical record information. Following the breach, several affected individuals filed a class action lawsuit alleging that the company failed to implement adequate security measures to protect their data.
Who is Eligible for the Settlement?
You are considered a “Class Member” if you were personally notified by HealthEC or a healthcare provider that your information was impacted by the data breach. Thousands of individuals across multiple healthcare systems were affected by this incident.
Some of the healthcare providers associated with the HealthEC breach include:
- Corewell Health
- Beaumont ACO
- Tandigm Health
- University Medical Center of Southern Nevada
- Compassion Health Care
If you received a notice in the mail containing a Unique ID and PIN, you are eligible to file a claim for compensation. Even if you did not receive a notice but believe your data was compromised through one of these providers, you may still be able to verify your status through the official settlement portal.
Available Benefits and Compensation
The settlement offers several different types of relief for those affected. Depending on how the breach impacted you, you can choose the claim type that best fits your situation. You do not have to prove actual identity theft to receive certain payments.
Expense Reimbursement
Class members can claim up to $2,500 for “out-of-pocket” losses. These are documented expenses that you incurred as a direct result of the data breach. Examples of eligible expenses include:
- Costs for credit monitoring services or identity theft insurance.
- Fees for credit reports or freezing your credit.
- Unreimbursed bank fees or fraudulent charges.
- Professional fees, such as costs for accountants or attorneys, to resolve identity theft issues.
- Postage, mileage, and phone charges related to resolving breach-related problems.
Compensation for Lost Time
If you spent time dealing with the fallout of the breach, such as monitoring your accounts or resolving fraudulent activity, you can claim payment for that time. You can be reimbursed for up to three hours of lost time at a rate of $25 per hour.
If you are claiming lost time, you must provide a brief description of the actions you took. If you are claiming more than a certain amount of time, some documentation of the underlying issue may be required.
Pro Rata Cash Payment
If you do not have specific expenses or lost time to report, you can opt for a flat pro rata cash payment. This amount is not fixed and depends entirely on how many people file valid claims. Estimates for these payments often range between $30 and $60, though the final amount could be higher or lower depending on the total settlement fund remaining after expenses and other claims are paid.
Step-by-Step Guide to Filing Your Claim
Filing a claim is a straightforward process that can be completed online or via mail. Most users find the online portal to be the fastest and most reliable method. Follow these steps to ensure your claim is submitted correctly.
Step 1: Locate Your Unique ID
Check the settlement notice you received in the mail. It should contain a Unique ID and a PIN. Having these codes ready will pre-populate your information and make the filing process much faster. If you lost your notice, you can contact the settlement administrator to request your ID.
Step 2: Choose Your Claim Type
Decide whether you want to claim specific expenses and lost time or if you prefer the flat pro rata payment. You can claim both expenses and lost time together, but you generally cannot combine those with the flat pro rata payment option. Review your records to see which option provides the most value for your situation.
Step 3: Complete the Claim Form
Visit the official settlement website and enter your ID and PIN. Fill out the required fields, including your current contact information. Accuracy is vital here, as this is where your payment will be sent. You will also need to select your preferred payment method, such as a physical check, Venmo, or direct deposit.
Step 4: Attach Documentation
If you are claiming reimbursement for out-of-pocket expenses, you must upload supporting documents. This could include receipts, bank statements showing fraudulent charges, or invoices for credit monitoring. Ensure the documents are clear and clearly show the date and the amount spent.
Step 5: Submit and Save Your Confirmation
Once you have filled out all sections, review your claim for errors. Submit the form before the official deadline. After submitting, you should receive a confirmation number. Save this number for your records, as you will need it if you ever need to check the status of your payment.
Important Deadlines to Remember
In any class action settlement, timing is everything. There are specific dates you must adhere to if you wish to receive a payment or protect your legal rights. If you miss the filing deadline, you will not be able to receive any money from the settlement fund.
- Claim Filing Deadline: This is the last day to submit your form online or postmark your paper claim.
- Objection Deadline: If you disagree with the terms of the settlement, you must submit your objection by this date.
- Opt-Out Deadline: If you wish to sue HealthEC individually for this breach, you must “opt out” of the settlement by this date. Doing so means you will not receive any money from this settlement.
- Final Approval Hearing: This is when the court decides whether the settlement is fair and should proceed to payment.
What Happens After You File?
After the filing deadline passes, the settlement administrator begins the process of verifying claims. This involves checking for duplicate entries and ensuring that the documentation provided for expense reimbursement is valid. This process can take several months.
Once all claims are verified and the court grants final approval, the settlement fund will be distributed. You should not expect to receive your payment immediately. Most class action settlements take between six and twelve months after the final hearing to issue payments to class members.
Protecting Your Identity Moving Forward
While receiving a settlement payment is helpful, it is also important to take proactive steps to protect your personal information after a data breach. Identity thieves often wait months or even years before using stolen data.
Consider placing a security freeze on your credit reports at the three major bureaus: Equifax, Experian, and TransUnion. A freeze prevents lenders from accessing your credit report, making it much harder for someone to open a new account in your name. Additionally, regularly monitor your bank and credit card statements for any unauthorized transactions.
Conclusion
The HealthEC settlement provides a way for affected individuals to recover costs and receive compensation for the privacy risks associated with the 2023 data breach. By following the steps outlined above, you can ensure that your claim is filed correctly and that you receive the benefits you are owed. If you have questions about your specific eligibility or the status of your claim, reaching out to the settlement administrator is the best way to get accurate, up-to-date information. For more guidance on managing your digital security and navigating consumer rights, explore our other helpful articles on data privacy and financial protection.