CVS Caremark pharmacy chain agrees to pay $2.25 million to settle charges of HIPAA violations; also settles with the FTC

Medical privacy | HIPAA | FTC – According to a legal complaint, CVS pharmacies — the largest pharmacy chain in the United States — did not take appropriate steps to protect its customers’ and employees’ sensitive information when it improperly disposed of documents, labels, prescription bottles, and other items with clearly identifiable and highly sensitive personal information such as SSNs, prescription information, driver’s license numbers, and other information still on those materials. CVS agreed to pay $2.25 million to settle its violations of HIPAA as part of a Resolution Agreement with the Department of Health and Human Services. CVS has also signed a consent agreement with the FTC; the public can comment on this agreement until March 20, 2009. The World Privacy Forum will be filing comments with the FTC on the consent agreement with CVS, which we will post here.