CareCentrix $6.3 Million Settlement for Data Breach

If you were affected by the CareCentrix data breach announced on July 10, 2019, you might be eligible for compensation from a class action settlement. This article will provide you with an overview of the settlement, including who can benefit, how much they can receive, and the steps to claim your award.

Who Benefits?: Individuals whose healthcare benefits CareCentrix coordinated and whose personal information was potentially compromised due to a data breach.

How much can I get?: Eligible class members can claim reimbursement for expenses up to $5,000, or opt for an Alternative Compensation of up to $50. Additional benefits include three years of credit monitoring services, and California residents may receive an extra $50.

Important Dates

• Final Approval Hearing: The Court held a Final Approval Hearing on October 31, 2023
• Deadline to File a Claim: Claims must be submitted by January 31, 2024.

Who is Eligible for the CareCentrix Settlement?

The settlement is designed for Benefit Recipients in the United States whose Personally Identifiable Information (PII) was allegedly exfiltrated between August 1, 2018, and March 30, 2019, due to the AMCA Security Incident. This class action settlement is intended to resolve claims against CareCentrix related to this data breach, which affected approximately 420,000 individuals.

• Individuals directly affected by the AMCA Security Incident
• California residents affected by the incident are eligible for additional compensation

Those related to CareCentrix or involved in the court proceedings are excluded from the settlement. This includes CareCentrix's entities, officers, directors, legal representatives, heirs, predecessors, successors, assigns, and any judges or court personnel involved in the action.

Understanding Your Settlement Award

The settlement provides various compensation options for class members. You can choose to be reimbursed for actual, verifiable out-of-pocket expenses up to $5,000 or opt for an alternative compensation of $50. The exact amount you receive will depend on the number of claims filed and may be adjusted pro rata.

• Reimbursement for Out-of-Pocket Losses: Up to $5,000 for expenses such as identity theft or fraud costs, professional service fees, and preventive measures.
• Alternative Compensation: A flat-rate payment of up to $50, subject to pro rata adjustments.
• Monitoring: Monitoring and assisted restoration services for up to three years for both medical information and personal details by Identity Guard
• Additional Payment: California Settlement Class Members are eligible for an additional payment of $50, depending on the number of claims filed.

The Data Breach at the Core of the Settlement

The settlement stems from a data breach at Retrieval-Masters Creditor's Bureau, Inc., doing business as American Medical Collection Agency (AMCA), which compromised the personal and health information of individuals for whom CareCentrix coordinated healthcare benefits.

• Personal Identifiable Information (PII) compromised
• Personal Health Information (PHI) at risk

Is Proof Required to Claim the Reward?

Yes, to claim reimbursement for out-of-pocket losses, you must provide verifiable proof of the expenses incurred due to the data breach. This includes documentation for identity theft or fraud costs, professional services, and any preventive measures taken.

How to Claim Your Award

To claim your award, complete and submit a valid Claim Form by following the detailed instructions provided. You can submit your claim online at Submit Your Claim or request a mail-in form from the Settlement Administrator. All claims must be submitted by January 31, 2024.

Ensure that you include all required information and supporting documentation when submitting your claim. The Settlement Administrator will review your claim to determine its validity and the amount you are eligible to receive.

Analyzing the Settlement Fund

The settlement fund of $6.3 million is non-reversionary and will cover all aspects of the settlement, including individual compensations, administrative costs, legal fees, and service awards. The fund is designed to ensure that all eligible class members receive adequate compensation for their claims.

The allocation of the settlement fund will depend on the number of valid claims submitted. If the total amount of claims exceeds the available funds, payments may be adjusted on a pro-rata basis to distribute the funds equitably among all claimants.

The Reason Behind the Class Action Settlement

This class action settlement aims to resolve the claims against CareCentrix efficiently and fairly without the need for prolonged litigation. It provides a structured way for affected individuals to receive financial damages and credit monitoring services to mitigate the impact of the data breach.

The settlement also includes provisions for ceasing collection efforts on any unresolved amounts due to CareCentrix by class members, further protecting those affected by the incident. If the settlement is approved by the Court, compensation will be distributed after any appeals are resolved.