Home Economy Government Deloitte to pay state $5M for RIBridges cyberattack expenses

Deloitte to pay state $5M for RIBridges cyberattack expenses

Updated at 3:34 p.m.

By

Katie Castellani

-

02/04/2025

State-House-Bill-pic-696x450 — DELOITTE CONSULTING LLP has provided Rhode Island $5 million to help pay for expenses from the RIBridges data breach, Gov. Daniel J. McKee’s office announced Tuesday./ PBN FILE PHOTO / WILLIAM HAMILTON

PROVIDENCE – Deloitte Consulting LLP has provided Rhode Island $5 million to help pay for expenses from the RIBridges data breach, Gov. Daniel J. McKee’s office announced Tuesday. The funding was announced less than an hour after McKee was scheduled to host a press conference on the cyberattack. The press conference, scheduled for 11 a.m.

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1 COMMENT

REMCO1@COX.NET 02/04/2025 At 1:47 pm

5 Mill is peanuts……I bet it cost 20% of that just to generate and mail out 650,000 notices to customers affected. Not counting the call center expenses that was overburdened with calls. I imagine there’s a lot more dollars exposed by the State of RI and ancillary affects to the 650,000 individuals than 5 Million.

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PROVIDENCE – Deloitte Consulting LLP has provided Rhode Island $5 million to help pay for expenses from the RIBridges data breach, Gov. Daniel J. McKee’s office announced Tuesday. The funding was announced less than an hour after McKee was scheduled to host a press conference on the cyberattack. The press conference, scheduled for 11 a.m. Tuesday, was canceled shortly after 10 a.m. Olivia DaRocha, a spokesperson for McKee, said his office hopes to reschedule the press conference “in short order.” DaRocha did not answer why it was canceled. Deloitte, which has a $99 million state contract to manage the RIBridges system, is also covering the cost of the call center for the data breach, credit monitoring and identity protection for affected customers. The $5 million will cover the expenses of about 2,000 HealthSource RI customers who were enrolled directly in coverage for January and February 2025. McKee previously estimated that 650,000 people had their personal data stolen as a result of the cyberattack in December. The information, stolen by ransomware group Brain Cypher, included Social Security and bank account numbers, along with information from health insurance received through HealthSourceRI. Some of that information was released on the dark web. “Deloitte has recognized that the state has immediate and unexpected expenses related to the breach, and we appreciate their willingness to lend financial support,” McKee said. Deloitte’s funding comes at the request of state leaders, who asked the firm for help with the costs of dealing with the cyberattack, according to a Jan. 10 letter Deloitte principal Lindsay Musser Hough sent to R.I. Department of Administration director Jonathan Womer. The funds should “...not be viewed as an indication or admission of wrongdoing or fault…” Hough said. Instead, the $5 million should be seen as an “act of goodwill” on Deloitte’s part and the state shouldn’t characterize it as a contractual damage, remedy payment or holding Deloitte accountable. RIBridges system is undergoing a phased relaunch. Customers can currently access the HealthyRhode portal, submit applications and interact with accounts as needed. HealthSource RI has worked with insurance providers to offer customers who needed coverage beginning Jan. 1 to enroll directly with Neighborhood Health Plan of Rhode Island and Blue Cross Blue Shield of Rhode Island. A spokesperson for McKee did not immediately respond to a request for comment Tuesday. (UPDATE: Adds comment from McKee spokesperson in 2nd paragraph, comment from Deloitte in 7th and 8th paragraphs.) Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.