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March 17, 2023

Website Design Business Settles False Claims Act Liability for Florida Medicaid Enrollment

A website design and hosting company, Jelly Bean Communications Design, LLC (“Jelly Bean”), and its manager settled False Claims Act  allegations with the Department of Justice (“DOJ”) this week concerning allegations that Jelly Bean knowingly failed to secure personal information on a Florida Healthy Kids program enrollment website created, hosted, and maintained by Jelly Bean. The enrollment website was created and hosted for Florida Healthy Kids Corporation (“FHKC”), an entity created by the state of Florida to offer health and dental insurance for children in Florida. The agreement between FHKC and Jelly Bean required that Jelly Bean’s hosting services comply with HIPAA. In December 2020, 500,000 applications submitted on the website were discovered to have been hacked. DOJ alleged that this breach was a result of Jelly Bean using various outdated and vulnerable applications, some of which had not been updated since November 2013. As part of the settlement, Jelly Bean agreed to pay $293,771.

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