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By Suzanne Blake
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Health care organization Kaiser Permanente agreed to a $46 million settlement to resolve an ongoing lawsuit accusing the company of improperly sharing patient data through its website and app.
The settlement arrived after several lawsuits filed in April and May 2024. In December, a consolidated single class-action case was filed, accusing Kaiser of using third-party tracking tools on its website.
Why It Matters
Data privacy is a major source of concern among health care organizations.
Read More on Health Care
Under the lawsuit, the plaintiffs alleged that Kaiser's website and mobile app transmitted their confidential information, including sensitive health data, to other companies such as Google, Microsoft, Meta and X.
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What To Know
While Kaiser has denied all allegations, the lawsuit’s complaints include that the company shared IP addresses, full names, medical histories and more with the other tech companies. It reached agreement on a deal, "to end the burden, expense, and uncertainty of further litigation," according to the settlement website.
"Out of an abundance of caution, we removed certain online technologies from our websites and mobile applications and informed members in 2024," a Kaiser spokesperson previously told Becker’s Hospital Review.
Newsweek reached out to Kaiser Permanente for comment via email.
"Kaiser Permanente implemented additional measures with the guidance of experts to safeguard against the recurrence of this type of incident," a spokesperson told Newsweek.
"After careful consideration, we elected to settle this case—although we have not identified any members’ private information being misused or at risk—to avoid the prolonged time, expense, and uncertainty of continued litigation."
The settlement specifically applies to the 13 million current and former members living in California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington and the District of Columbia.
To be eligible, you must have accessed Kaiser websites or mobile apps from November 2017 to May 2024. The company has said members will receive a physical or emailed settlement notice with a unique class member ID to file a claim. For those meeting the requirements, the settlement provides a one-time cash payment, likely from $20 to $40.
"For companies that have high volumes of sensitive information on their customers, this is yet another reminder that allegations in mishandling that data can produce far more than bad press," Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
"There are financial penalties that could be sizable, and protecting the data of users has both high ethical and fiscal purpose."
What People Are Saying
A spokesperson for Kaiser told Newsweek: "At Kaiser Permanente, we remain committed to protecting the privacy and confidentiality of our members’ information in compliance with regulatory requirements. We are not aware of any misuse of personal information, and this matter did not involve disclosure of usernames, passwords, Social Security numbers, financial account information, or credit card numbers. Out of an abundance of caution, we removed certain online technologies from our websites and mobile applications and informed members in 2024."
Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, to Newsweek: "Kaiser Permanente is joining the growing list of providers facing class-action lawsuits over data privacy, as patients are raising concerns about how their information has been shared. Much like other recent cases, user data and online interactions were reportedly shared across multiple platforms without clear consent."
What Happens Next
You must submit a claim before or on March 12 to receive the funds. With the final court hearing scheduled for May 7, payments are likely to be sent out shortly afterward.
“Luckily, the process for this one isn't as complicated as some from other settlements we've seen in the past; users will get notified via physical mail or e-mail, and the message will include steps members should take,” Beene added.
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