Regulators Investigate Health Net Security Lapse Involving Personal Information of 1.9 Million People

State regulators have opened an investigation into the security practices of insurer Health Net Inc. after the Woodland Hills company revealed the loss of computerized records containing personal information related to about 1.9 million people. The California Department of Managed Health Care launched the probe after Health Net disclosed that several of its computer drives were missing. The company said the records included addresses, social security numbers and other information of customers, employees and health-care providers. “Health Net has agreed to provide two years of free credit monitoring services to its California enrollees, in addition to identity theft insurance, fraud resolution and restoration of credit files, if needed,” department spokeswoman Lynne Randolph said in a statement. Health Net said it is conducting its own investigation of the security breach at its data center in Rancho Cordova near Sacramento.

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