Your concern here is that information about the "other child" was sent to "Parent1" - and this "parent1" is not that child's parent, correct?
It depends what was disclosed in the letter that you mentioned. HIPAA covers disclosure of health-related information, but strictly speaking does NOT cover disclosure of the existence of insurance coverage itself. More important that worrying about whether it's a HIPAA violation you should be working with the insurance administrator to get them to straighten out their records.
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