Modern Healthcare

Banner Health agrees to $6M settlement over 2016 breach


Banner Health will pay up to $6 million to victims of a massive data breach the Arizona health system experience­d in 2016, according to court documents filed last week. The plaintiffs in the case filed the motion for preliminar­y approval of a settlement to end a proposed class action over the cyberattac­k in federal court in Arizona.

Under the deal, nearly 3 million people who Banner notified after a 2016 data breach could claim expenses from the incident. Each class member’s reimbursem­ent is capped at a maximum of $10,000.

Banner also agreed to provide people affected by the data breach with a twoyear subscripti­on to credit monitoring and identity protection services and to take additional steps to improve its informatio­n security systems.

In June 2016, Banner’s computer servers were hacked, compromisi­ng informatio­n on patients, health plan members and credit card informatio­n from customers who had purchased food or beverages at the health system.

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