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Castlight Health Announces Fourth Quarter and Full Year 2020 Results

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SAN FRANCISCO, Feb. 23, 2021 /PRNewswire/ — Castlight Health, Inc. (NYSE:CSLT), a leading health benefits platform provider, today announced results for its fourth quarter and full year ended December 31, 2020.

“Our strong fourth quarter performance punctuated an important year for Castlight, during which we achieved a number of strategic milestones and delivered Castlight’s best financial performance in the company’s history,” said Maeve O’Meara, chief executive officer of Castlight Health. “We accomplished several key achievements in the quarter, including adding a new health plan customer, Blue Cross Blue Shield of Alabama, in December, signing a partnership with Boston Children’s Hospital to support the national vaccination effort, and delivering strong results from our first year live with Care Guides. Our swift decisions early in the year strengthened our financial position, but still enabled us to address our customers’ needs amidst the pandemic. We are confident that the foundation we have built in high-tech, high-touch navigation has us well positioned to capture share in the growing market and deliver ARR growth in 2021.”

Financial performance for the three months ended December 31, 2020 compared to the three months ended December 31, 2019 includes:

  • GAAP total revenue of $37.1 million, compared to $36.4 million
  • GAAP gross margin of 65.2%, compared to 55.3%
  • Non-GAAP gross margin of 68.0%, compared to 57.8%
  • GAAP operating loss of $1.4 million, compared to $12.2 million
  • Non-GAAP operating income of $2.7 million, compared to an operating loss of $8.1 million
  • GAAP net loss per basic and diluted share of $0.01, compared to a net loss per basic and diluted share of $0.08
  • Non-GAAP net income per basic and diluted share of $0.02, compared to a net loss per basic and diluted share of $0.05
  • Cash provided by operations of $3.0 million, compared to $4.0 million

Financial performance for the 12 months ended December 31, 2020 compared to the 12 months ended December 31, 2019 includes:

  • GAAP total revenue of $146.7 million, compared to $143.3 million
  • GAAP gross margin of 64.5%, compared to 58.8%
  • Non-GAAP gross margin of 67.5% compared to 61.6%
  • GAAP operating loss of $62.8 million, compared to a loss of $41.3 million
  • Non-GAAP operating income of $6.3 million, compared to a loss of $21.7 million
  • GAAP net loss per basic and diluted share of $0.41, compared to a net loss per basic and diluted share of $0.28
  • Non-GAAP net income per basic and diluted share of $0.05, compared to a net loss per basic and diluted share of $0.14
  • Cash used in operations of $5.6 million, compared to $17.4 million used in operations

Total cash and cash equivalents were $49.2 million as of December 31, 2020.

A reconciliation of GAAP to non-GAAP results has been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

For the full year 2021, the Company expects:

  • GAAP revenue in the range of $130 million and $135 million
  • Non-GAAP operating loss between $4 million and $9 million
  • Non-GAAP net loss per share between $0.02 and $0.06, based on approximately 160 million to 161 million shares

For the first quarter of 2021, the Company expects:

  • GAAP revenue in the range of $32 million and $34 million

Quarterly Conference Call

Castlight Health senior management will host a conference call to discuss its fourth quarter and full year 2020 results and business outlook today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the Company’s Investor Relations website at http://ir.castlighthealth.com. An archive of the webcast can also be accessed through the same link. The live conference call can be accessed by dialing (833) 238-7953 and the replay will be available for one week at (800) 585-8367. The conference ID number for the live call and replay is 4576726.

About Castlight Health

Castlight is on a mission to make it as easy as humanly possible for its users to navigate the healthcare system and live happier, healthier, more productive lives. Our health navigation platform connects hundreds of health vendors, benefits resources, and plan designs into one comprehensive health and wellbeing experience. We guide individuals—based on their unique profile—to the best resources available to them, whether they are healthy, chronically ill, or actively seeking medical care. Castlight transforms the employee benefit experience into a deeply personalized, yet simple, guided one, empowering better-informed patient decisions to unlock better healthcare outcomes and maximizing return on healthcare investments.

For more information visit www.castlighthealth.com.  Follow us on Twitter and LinkedIn and Like us on Facebook.

Non-GAAP Financial Measures

To supplement Castlight Health’s financial statements presented in accordance with generally accepted accounting principles (GAAP), we also use and provide investors and others with non-GAAP measures of certain components of financial performance, including non-GAAP gross profit and margin, non-GAAP operating expense, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP net income (loss) per share. Non-GAAP gross profit and margin, non-GAAP operating expense, non-GAAP operating income (loss), and non-GAAP net income (loss) exclude goodwill impairment, stock-based compensation, certain legal expenses, amortization of intangibles, restructuring charges, capitalization and amortization of internal-use software, and lease exit and related charges.

We believe that these non-GAAP financial measures provide useful supplemental information to investors and others, facilitate the GFN of the company’s core operating results and comparison of operating results across reporting periods, and can help enhance overall understanding of the company’s historical financial performance. However, these non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP.

The non-GAAP measures we provide may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Castlight Health encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

We have provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, except that we have not reconciled our non-GAAP (i) operating loss and net loss per share guidance for the full year 2021 to comparable GAAP measures because we do not provide guidance for stock-based compensation expense, and (ii) capitalization and amortization of internal-use software, which are reconciling items between GAAP and non-GAAP. The factors that may impact our future stock-based compensation expense, and capitalization and amortization of internal-use software, are out of our control and/or cannot be reasonably predicted, and therefore we are unable to provide such guidance without unreasonable effort. Factors include our market capitalization and related volatility of our stock price and our inability to project the cost or scope of internally produced software.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would” and similar expressions identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. The forward-looking statements about Castlight Health’s expectations, plans, intentions, and strategies include, but are not limited to, statements regarding certain 2021 projections, the impact of COVID-19, the success of our strategy, and our expectations for our future business and financial performance. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties include those described in Castlight Health’s Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified in their entirety by these cautionary statements and are based on information available to Castlight Health as of the date hereof. Castlight Health assumes no obligation to update these forward-looking statements, except as required by law.

Copyright 2021 Castlight Health, Inc. Castlight Health® is the registered trademark of Castlight Health, Inc. Other company and product names may be trademarks of the respective companies with which they are associated.

CASTLIGHT HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)

As of

December 31, 2020

December 31, 2019

Assets

Current assets:

Cash and cash equivalents

$

49,242

$

43,017

Marketable securities

16,411

Accounts receivable and other, net

31,740

31,397

Prepaid expenses and other current assets

3,800

4,645

Total current assets

84,782

95,470

Property and equipment, net

5,321

4,856

Restricted cash, non-current

1,144

1,144

Deferred commissions

9,556

14,718

Deferred professional service costs

4,462

6,711

Intangible assets, net

7,930

12,178

Goodwill

41,485

91,785

Operating lease right-of-use assets, net

10,238

13,906

Other assets

1,855

2,016

Total assets

$

166,773

$

242,784

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

5,145

$

19,596

Accrued expenses and other current liabilities

7,898

10,454

Accrued compensation

8,633

8,770

Deferred revenue

6,848

10,173

Operating lease liabilities

5,789

5,914

Total current liabilities

34,313

54,907

Deferred revenue, non-current

663

572

Debt, non-current

1,395

Operating lease liabilities, non-current

7,446

11,823

Other liabilities, non-current

485

1,213

Total liabilities

42,907

69,910

Stockholders’ equity

123,866

172,874

Total liabilities and stockholders’ equity

$

166,773

$

242,784

CASTLIGHT HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2020

2019

2020

2019

Revenue:

Subscription

$

34,419

$

34,723

$

141,160

$

137,393

Professional services and other

2,667

1,724

5,549

5,915

Total revenue, net

37,086

36,447

146,709

143,308

Cost of revenue:

Cost of subscription(1)

7,932

9,150

34,996

34,067

Cost of professional services and other(1)

4,989

7,150

17,046

25,007

Total cost of revenue

12,921

16,300

52,042

59,074

Gross profit

24,165

20,147

94,667

84,234

Operating expenses:

Sales and marketing(1)

7,713

10,664

32,026

38,597

Research and development(1)

11,418

14,487

49,465

58,994

General and administrative(1)

6,405

7,238

25,662

27,981

Goodwill impairment

50,300

Total operating expenses

25,536

32,389

157,453

125,572

Operating loss

(1,371)

(12,242)

(62,786)

(41,338)

Other income, net

174

496

603

1,336

Net loss

$

(1,197)

$

(11,746)

$

(62,183)

$

(40,002)

Net loss per share, basic and diluted

$

(0.01)

$

(0.08)

$

(0.41)

$

(0.28)

Weighted-average shares used to compute
basic and diluted net loss per share

154,739

147,359

151,478

145,172

(1)

  Includes stock-based compensation expense as follows:

Three Months Ended December 31,

Year Ended December 31,

2020

2019

2020

2019

Cost of revenue:

Cost of subscription

$

215

$

179

$

813

$

774

Cost of professional services and other

219

216

650

953

Sales and marketing

326

175

2,028

2,142

Research and development

1,041

1,369

4,544

6,100

General and administrative

1,085

1,217

4,410

5,034

CASTLIGHT HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2020

2019

2020

2019

Operating activities:

Net loss

$

(1,197)

$

(11,746)

$

(62,183)

$

(40,002)

Adjustments to reconcile net loss to net cash used in
      operating activities:

Depreciation and amortization

1,630

1,552

6,537

5,920

Goodwill impairment

50,300

Stock-based compensation

2,886

3,156

12,445

15,003

Amortization of deferred commissions

2,272

3,365

7,789

10,768

Amortization of deferred professional service costs

1,100

2,132

3,517

5,242

Non-cash operating lease expense

1,145

1,396

4,910

5,315

Accretion and amortization of marketable securities

6

2

(238)

Changes in operating assets and liabilities:

Accounts receivable and other, net

(1,269)

4,045

(343)

(4,581)

Deferred commissions

(1,231)

(841)

(2,627)

(5,344)

Deferred professional service costs

(260)

(385)

(1,178)

(1,686)

Prepaid expenses and other assets

582

924

824

102

Accounts payable

426

6,900

(13,622)

9,278

Operating lease liabilities

(1,558)

(1,459)

(5,744)

(5,726)

Accrued expenses and other liabilities

(245)

(688)

(2,821)

(3,760)

Deferred revenue

(3,134)

(7,588)

(3,234)

(10,478)

Accrued compensation

1,812

3,223

(137)

2,795

Net cash provided by (used in) operating activities

2,959

3,992

(5,565)

(17,392)

Investing activities:

Purchase of property and equipment

(149)

(1,241)

(3,580)

(1,953)

Purchase of marketable securities

(7,520)

(2,994)

(30,589)

Sales of marketable securities

2,001

Maturities of marketable securities

11,075

17,400

25,745

Net cash (used in) provided by investing activities

(149)

2,314

12,827

(6,797)

Financing activities:

Proceeds from exercise of stock options

92

1,136

270

3,060

Proceeds from ESPP offering

371

Principal payments on long-term debt

(464)

(465)

(1,859)

(1,859)

Net cash (used in) provided by financing activities

(372)

671

(1,218)

1,201

Net increase (decrease) in cash, cash equivalents and 
     restricted cash

2,438

6,977

6,044

(22,988)

Cash, cash equivalents and restricted cash at beginning of 
     period

47,948

37,365

44,342

67,330

Cash, cash equivalents and restricted cash at end of 
     period

$

50,386

$

44,342

$

50,386

$

44,342

Reconciliation of cash, cash equivalents and restricted
      cash:

Cash and cash equivalents

$

49,242

$

43,017

$

49,242

$

43,017

Restricted cash included in Prepaid and other current
      assets

181

181

Restricted cash, non-current

1,144

1,144

1,144

1,144

Total cash, cash equivalents and restricted cash

$

50,386

$

44,342

$

50,386

$

44,342

CASTLIGHT HEALTH, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(unaudited)

Three Months Ended

Year Ended

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Gross profit:

GAAP gross profit subscription

$

26,487

$

26,056

$

25,573

$

106,164

$

103,326

Stock-based compensation

215

224

179

813

774

Amortization of internal-use software

80

79

264

Amortization of intangibles

530

530

530

2,120

2,364

Reduction in workforce

221

Non-GAAP gross profit subscription

$

27,312

$

26,889

$

26,282

$

109,582

$

106,464

GAAP gross margin subscription

77.0

%

76.5

%

73.6

%

75.2

%

75.2

%

Non-GAAP gross margin subscription

79.4

%

78.9

%

75.7

%

77.6

%

77.5

%

GAAP gross loss professional services

$

(2,322)

$

(2,865)

$

(5,426)

$

(11,497)

$

(19,092)

Stock-based compensation

219

171

216

650

953

Reduction in workforce

317

Non-GAAP gross loss professional services

$

(2,103)

$

(2,694)

$

(5,210)

$

(10,530)

$

(18,139)

GAAP gross margin professional services

(87)

%

(284)

%

(315)

%

(207)

%

(323)

%

Non-GAAP gross margin professional services

(79)

%

(267)

%

(302)

%

(190)

%

(307)

%

GAAP gross profit

$

24,165

$

23,191

$

20,147

$

94,667

$

84,234

Impact of non-GAAP adjustments

1,044

1,004

925

4,385

4,091

Non-GAAP gross profit

$

25,209

$

24,195

$

21,072

$

99,052

$

88,325

GAAP gross margin

65.2

%

66.1

%

55.3

%

64.5

%

58.8

%

Non-GAAP gross margin

68.0

%

69.0

%

57.8

%

67.5

%

61.6

%

Operating expense:

GAAP sales and marketing

$

7,713

$

6,158

$

10,664

$

32,026

$

38,597

Stock-based compensation

(326)

(282)

(175)

(2,028)

(2,142)

Amortization of intangibles

(528)

(528)

(529)

(2,112)

(1,601)

Reduction in workforce

2

(332)

Non-GAAP sales and marketing

$

6,859

$

5,350

$

9,960

$

27,554

$

34,854

GAAP research and development

$

11,418

$

11,182

$

14,487

$

49,465

$

58,994

Stock-based compensation

(1,041)

(1,026)

(1,369)

(4,544)

(6,100)

Reduction in workforce

(5)

(663)

Certain legal expenses

191

(191)

Capitalization of internally developed software

80

21

80

Non-GAAP research and development

$

10,377

$

10,151

$

13,198

$

44,470

$

52,783

GAAP general and administrative

$

6,405

$

6,341

$

7,238

$

25,662

$

27,981

Stock-based compensation

(1,085)

(1,401)

(1,217)

(4,410)

(5,034)

Amortization of intangibles

(16)

(17)

(66)

Certain legal expenses

(533)

Reduction in workforce

15

(482)

Non-GAAP general and administrative

$

5,320

$

4,955

$

6,005

$

20,753

$

22,348

GAAP goodwill impairment

$

$

$

$

50,300

$

Goodwill impairment

(50,300)

Non-GAAP goodwill impairment

$

$

$

$

$

GAAP operating expense

$

25,536

$

23,681

$

32,389

$

157,453

$

125,572

Impact of non-GAAP adjustments

(2,980)

(3,225)

(3,226)

(64,676)

(15,587)

Non-GAAP operating expense

$

22,556

$

20,456

$

29,163

$

92,777

$

109,985

Operating loss:

GAAP operating loss

$

(1,371)

$

(490)

$

(12,242)

$

(62,786)

$

(41,338)

Impact of non-GAAP adjustments

4,024

4,229

4,151

69,061

19,678

Non-GAAP operating income (loss)

$

2,653

$

3,739

$

(8,091)

$

6,275

$

(21,660)

Net loss and net loss per share:

GAAP net loss

$

(1,197)

$

(447)

$

(11,746)

$

(62,183)

$

(40,002)

Total pre-tax impact of non-GAAP adjustments

4,024

4,229

4,151

69,061

19,678

Non-GAAP net income (loss)

$

2,827

$

3,782

$

(7,595)

$

6,878

$

(20,324)

GAAP net loss per share, basic and diluted

$

(0.01)

$

$

(0.08)

$

(0.41)

$

(0.28)

Non-GAAP net income (loss) per share, basic and diluted

$

0.02

$

0.02

$

(0.05)

$

0.05

$

(0.14)

Shares used in basic and diluted net loss per share computation

154,739

152,146

147,359

151,478

145,172

Castlight Media Contact:
Caroline Kawashima
[email protected]
415-246-0313

Castlight Investor Contact:
[email protected]
443-213-0500

SOURCE Castlight Health, Inc.

Related Links

http://www.castlighthealth.com

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Vermont Health Connect had 10 data breaches last winter

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Vermont Health Connect had 10 data breaches last winter
Vermont Health Connect has set up a special enrollment period in response to the coronavirus outbreak. VHC photo

In mid-December, a Vermont Health Connect user was logging in when the names of two strangers popped up in the newly created account.

The individual, who was trying to sign up for health insurance, deleted the information that had suddenly appeared.

“It was super unsettling to think that someone is filing in my account with my information,” the person, whose name is redacted in records, wrote in a complaint to the Department of Vermont Health Access. “Just seems like the whole thing needs a big overhaul.”

It was one of 10 instances between November and February when Vermont Health Connect users reported logging to find someone else’s information on their account.

The data breaches included names of other applicants and, in some cases, their children’s names, birth dates, citizenship information, annual income, health care plans, and once, the last four digits of a Social Security number, according to nearly 900 pages of public records obtained by VTDigger. On Dec. 22, the department’s staff shut down the site to try to diagnose the problem.

While officials say the glitches have been resolved, it’s the most recent mishap for a system that has historically been plagued by security and technical issues. The breaches could be even more widespread: Administrators of Vermont Health Connect can’t tell if other, similar breaches went unreported.

“We don’t know what we don’t know,” said Jon Rajewski, a managing director at the cybersecurity response company Stroz Friedberg. Regardless of whether there are legal ramifications for the incidents, they should be taken “very seriously,” he said.

“If my data was being stored on a website that was personal, — maybe it contains names or my Social Security number, like my status of insurance… — I would expect that website to secure it and keep it safe,” he said.

“I wouldn’t want someone else to access my personal information.”

Andrea De La Bruere, executive director of the Agency of Human Services, called the data breaches “unfortunate.” But she downplayed the severity of the issues. Between November and December, 75,000 people visited the Vermont Health Connect website for a total of 330,000 page views, she said. The 10 incidents? “It’s a very uncommon thing to have happen,” she said.

De La Bruere said the issue was fixed on Feb. 17, and users had reported no similar problems since. The information that was shared was not protected health information, she added, and the breaches didn’t violate the Health Insurance Portability and Accountability Act, or HIPAA.

“No matter what the law says technically, whether it’s HIPAA-related or just one’s personal information, it’s really concerning,” said Health Care Advocate Mike Fisher.

The timing of the issue is less than ideal, he added. Thousands of Vermonters will be logging into Vermont Health Connect in the coming weeks to take advantage of discounts granted by the American Rescue Plan. “It’s super important that people can access the system, and that it’s safe and secure,” Fisher said.

A ‘major issue

The issues first arose on Nov, 12, when at least two Vermonters logged in and found information about another user, according to records obtained by VTDigger.

Department of Vermont Health Access workers flagged it as a “major issue” for their boss, Kristine Fortier, a business application support specialist for the department.

Similar incidents also occurred on Nov. 17 and 18, and later on multiple days in December.

Department of Vermont Health Access staff members appeared alarmed at the issues, and IT staff escalated the tickets to “URGENT.”

“YIKES,” wrote a staff member Brittney Richardson. While the people affected were notified, the data breaches were never made public.

State workers pressed OptumInsights, a national health care tech company that hosts and manages Vermont Health Connect, for answers. The state has contracted with the company since 2014. It has paid about $11 million a year for the past four years for maintenance and operations, with more added in “discretionary funds.”

Optum appeared unable to figure out the glitch. “It is hard to find root cause of issue,” wrote Yogi Singh, service delivery manager for Optum on Dec. 10. Optum representatives referred comments on the issues to the state.

By Dec. 14, Grant Steffens, IT manager for the department, raised the alarm. “I’m concerned on the growing number of these reports,” he wrote in an email to Optum.

The company halted the creation of new accounts on Dec, 14, and shut down the site entirely on Dec, 22 to install a temporary fix. “It’s a very complex interplay of many many pieces of software on the back end,” said Darin Prail, agency director of digital services. The complexity made it challenging to identify the problem, and to fix it without introducing any new issues, he said.

In spite of the fixes, a caller reported a similar incident on Jan. 13.

On Feb. 8, a mother logged in to find that she could see her daughter’s information. When she logged into her daughter’s account, the insurance information had been replaced by her own.

“Very weird,” the mother wrote in an emailed complaint.

Optum completed a permanent fix on Feb. 17, according to Prail. Vermont Health Connect has not had a problem since, he said.

Prail said the state had reported the issues to the Centers for Medicaid and Medicare Services as required, and had undergone a regular audit in February that had no findings. The state “persistently pressured Optum to determine the root cause and correct the issue expeditiously but at the same time, cautiously, so as to not introduce additional issues/problems,” he wrote in an email to VTDigger.

“We take reported issues like this very seriously,” he said.

A history of glitches

The state’s health exchange has been replete with problems, including significant security issues and privacy violations, since it was built in 2012 at a cost of $200 million.

The state fired its first contractor, CGI Technology Systems, in 2014. A subcontractor, Exeter, went out of business in 2015. Optum took over for CGI, and continued to provide maintenance and tech support for the system.

Don Turner
Don Turner, right, then the House minority leader, speaks in 2016 about the need to fix the state’s glitch-ridden Vermont Health Connect website. With him are Phil Scott, left, then the lieutenant governor, and Sen. Joe Benning. Photo by Erin Mansfield/VTDigger

In 2018, when Vermont Health Connect was less than 6 years old, a report dubbed the exchange outdated and “obsolete.”

Officials reported similar privacy breaches in 2013, when Vermonters saw other people’s information.

An auditor’s report in 2016 found a slew of cybersecurity flaws, and officials raised concerns again during a  2018 email breach.

It wasn’t the first time that Vermont Health Connect users had been able to view other people’s personal information. Three times since October 2019, individuals had logged in to see another individual’s insurance documents. Prail attributed those incidents to human error, not to system glitch; a staff member uploaded documents to the wrong site, he said.

In spite of the issues, Prail said he and other state officials have been happy with Optum. After years of technical challenges with Vermont Health Connect, “Optum has really picked up the ball and improved it and been running it pretty well,” he said.

Glitches are inevitable, he added, and Optum has addressed them quickly. “They took a really difficult-to-manage site and made it work pretty well,” he said. “Optum is generally quite responsive to any issues we have.”

“I find any privacy breach to be concerning,” said Scott Carbee, chief information security officer for the state. He noted that the state uses “hundreds of software systems.” “While the scope of the breaches can be mitigated, true prevention is a difficult task,” he wrote in an email to VTDigger.

Optum spokesperson Gwen Moore Holliday referred comments to the state, but said the company was “honored” to work with Vermont Health Connect “to support the health care needs of Vermont residents.”

Prail said the Agency of Human Services had no plans to halt its contract with the company. “I don’t have a complaint about Optum,” he said. “They took a really difficult-to-manage site and made it work pretty well.”

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Filed under:

Health Care

Tags: data breaches, Optum, Vermont Health Connect

Katie Jickling

About Katie

Katie Jickling covers health care for VTDigger. She previously reported on Burlington city politics for Seven Days. She has freelanced and interned for half a dozen news organizations, including Vermont Public Radio, the Valley News, Northern Woodlands, Eating Well magazine and the Herald of Randolph. She is a graduate of Hamilton College and a native of Brookfield.