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This seems wrong to me. Who really cares if someone knows if you had dental care? Will all the patients get $750? Or the state gets the money?
The ignorance of your comment is beyond believable. Forget the fact that dental records are medical records and should be private and protected, the stolen records included insurance information, which would include names, dates of birth, addresses, and, most likely, social security numbers. Clearly, you have never had your identity stolen and have had to deal with the consequences of stolen identity.