The Delaware Department of Insurance has reported a security breach involving Summit Reinsurance Services, Inc. and BCS Financial Corporation, both subcontractors of Highmark BlueCross BlueShield of Delaware.
The companies were associated with the predecessor of Highmark Delaware.
The breach potentially affects thousands of Delawareans with employer-paid plans.
According to an Insurance Department, release, the breach impacts a total of sixteen current and former Highmark self-insured customers and approximately 19,000 of their members.
Insurance Commissioner Trinidad Navarro issued the following statement.
“We are aware of the reported breach. I would like to ensure Delaware consumers that the Department of Insurance takes this matter seriously and is currently investigating how this occurred. I have directed my staff to closely monitor the situation as it develops. Many Delawareans have received mailed correspondence from SummitRe explaining the Unfortunately; we fear that many may have misinterpreted or inadvertently discarded the letter as some form of a sales ad. If consumers have received a letter from SummitRe regarding this situation and have questions, they may contact the Delaware Department of Insurance at 1-800-282-8611 or 302-674-7300, or by e-mail at consumer@state.de.us.”
The commissioner has ordered an investigation into the reported breach. Highmark Blue Cross Blue Shield of Delaware is cooperating with the Delaware Department of Insurance to resolve the matter.
Highmark issued the following statement
Highmark BCBSD (formerly Blue Cross Blue Shield of Delaware) provides third party administrator services for large self-funded groups in the State of Delaware. At one time, Blue Cross Blue Shield of Delaware had an arrangement with BCS Financial (BCS), a company owned by Blue Cross and Blue Shield plans nationwide, to provide excess loss coverage. In 2009, BCS packaged data and sent it to Summit Reinsurance Services in order to request a quote to reinsure its own risk. That data file contained Blue Cross Blue Shield of Delaware information.
Highmark Delaware is assisting the involved entities in responding to the issues/concerns that the Summit breach has created for the impacted individuals.
