Durbin Measure Would Help Protect Illinois Seniors From ID Theft

DURBIN MEASURE WOULD HELP PROTECT ILLINOIS SENIORS FROM ID THEFT

Building on earlier efforts to help protect Illinois seniors from identity theft, U.S. Senator Dick Durbin (D-IL) introduced legislation last week requiring the federal government to replace Social Security numbers from Medicare cards and documents with new patient identifiers.

"Identify theft is one of the fastest growing crimes in Illinois and the rest of the country. More than 11,000 people reported identity theft to the Illinois Attorney General's office in 2005. The Senate's overwhelming bipartisan support for this concept has made it clear that protecting our seniors needs to be a top priority for this Congress," Durbin said.

Last October, Durbin proposed an amendment to the Labor, HHS, Education Appropriations bill requiring the Centers for Medicare and Medicaid Services (CMS) to report to Congress on how they intend to replace Social Security numbers with new patient identifiers. The amendment received unanimous support, passing the Senate in a 98-0 vote. While the amendment was changed slightly in the final version of the bill, the final conference report noted the proposal as a priority.

"A Social Security number is a key for an identity thief, who can use it to open a new bank account or get a new credit card. But the federal government continues to print Social Security numbers on Medicare cards, leaving 40 million seniors with their Social Security numbers in plain sight. It is time for the federal government to step up in the fight against identity theft," Durbin added.

Durbin also sent a letter last week to Dr. Mark McClellan, Administrator of CMS, asking that he address the issue immediately. In the letter, Durbin noted a recent Government Accountability Office (GAO) report showed that "there are significant gaps in federal law and agency oversight with regard to the sharing of Social Security numbers." The Senator asked that CMS submit a report to the Labor-HHS Appropriations Subcommittee by July 31, 2006 outlining how the agency will change the system and how much it will cost.

Many states and local governments have taken steps to protect their state residents. Twelve states have passed laws restricting the use of Social Security numbers, including Illinois, where private insurers are prohibited from using Social Security numbers as patient identifiers. Durbin's bill would provide those covered by Medicare the same kind of identity theft protection that patients with private insurance have in Illinois.

Text of letter below:

February 16, 2006

Dr. Mark McClellan
Administrator
Center for Medicare and Medicaid Services
Department of Health and Human Services
200 Independence Ave., SW Room 341 H
Washington, DC 20201

Dear Dr. McClellan:

As you know, I am very concerned about the use of Social Security numbers as patient identifiers for Medicare beneficiaries. According to the Federal Trade Commission, seniors are more vulnerable to fraud, including identity theft, than any other group. In 2004, consumers age 50 and over reported $152 million in fraud losses to the agency, which is likely only a small fraction of the fraud that actually took place.

One of the main actions federal, state and local governments instruct consumers to take in protecting themselves from identity theft is guarding their Social Security number. In fact, 12 states have passed laws restricting the use of Social Security numbers in order to protect their citizens. Meanwhile, the Center for Medicare and Medicaid Services continues to print Social Security numbers on Medicare cards and benefit statements, leaving 40 million seniors with their Social Security numbers in plain sight.

The Government Accountability Office published a report last month showing there are significant gaps in federal law and agency oversight with regard to the sharing of Social Security numbers. The federal government should be leading by example in protecting Americans from identity thieves. Taking Social Security numbers off Medicare cards and benefit statements is a good first step.

As the Labor-HHS Appropriations Subcommittee made clear in the report accompanying the FY06 bill funding your agency, the Committee considers this issue to be of utmost urgency and expects the Secretary to accelerate ongoing plans to convert beneficiary identifiers to a number not associated with Social Security.

I request that you please submit to the Committee by July 31, 2006, a report outlining how your agency will expeditiously go about changing the system of patient identifiers and how much it will cost.

Sincerely,

Richard J. Durbin
United States Senator

http://durbin.senate.gov/record.cfm?id=251791&&