Letter to Leavitt, Secretary of Health and Human Services, Re: Protect Identities of Medicare Card Holders

Letter

Letter to Leavitt, Secretary of Health and Human Services, Re: Protect Identities of Medicare Card Holders

Durbin Asks Agency to do More to Protect Identities of Medicare Card Holders

United States Senator Dick Durbin (D-IL) today asked the Department of Health and Human Services (HHS) to detail their response to a report criticizing the policy of listing Social Security numbers on Medicare identification cards. In a letter to HHS Secretary Michael Leavitt, Durbin highlighted the risk that listing Social Security numbers poses to Medicare beneficiaries and asked for an explanation of steps that are being taken to eliminate the numbers from Medicare cards.

"Continuing to display Social Security numbers on Medicare identification cards and notices mailed to Medicare beneficiaries needlessly increases the risk of identity theft and fraud," Durbin wrote. "Private health insurers have moved away from using Social Security numbers. Other federal agencies have too. It is time for CMS [Center for Medicare Services] to do the same."

According to the Federal Trade Commission, over 8 million Americans were victims of identity theft in 2005. A recent report, issued by the Inspector General of the Social Security Administration, concluded that Social Security numbers on Medicare cards increases the risk of identity theft and urges immediate action to address this vulnerability.

CMS provided a report to Congress in October 2006, outlining a plan to move away from using Social Security numbers on Medicare cards. The report, issued at Durbin's request, estimated that switching to a non-Social Security number would cost about $338 million and would take at least eight years. CMS does not appear to have taken any further action on the matter.

A copy of the Durbin's letter to Secretary Leavitt can be found below.

July 11, 2008

Michael Leavitt
Secretary of Health and Human Services
200 Independence Avenue, S.W.
Washington, DC 20201

Dear Secretary Leavitt:

I am writing to ask how the Department of Health and Human Services will respond to a recent report from the Inspector General of the Social Security Administration urging the removal of Social Security numbers from Medicare identification cards.

Using Social Security numbers is a convenient method of identifying individuals, but it also increases the risk of identity theft and fraud. The Federal Trade Commission reported that more than 8 million Americans were victims of identity theft in 2005. Recognizing this threat, many public and private entities have taken steps to limit the use and display of Social Security numbers.

As you know, the Health Insurance Claim Number used to identify Medicare beneficiaries is based on Social Security numbers. I successfully offered an amendment to the Senate version of the Fiscal Year 2006 Labor-HHS-Education appropriations bill to require CMS to provide a report to Congress outlining a plan to move away from using Social Security numbers on Medicare identification cards. While CMS prepared the report, it has not implemented that plan.

The Office of Management and Budget called on federal agencies last year to safeguard personally identifiable information, including requiring agencies to establish plans to eliminate unnecessary collection and use of Social Security numbers and to explore alternatives to Social Security numbers. Yet CMS continues to display Social Security numbers on Medicare cards and other documents.

The new report from the Inspector General of the Social Security Administration reinforced the dangers of using Social Security numbers on Medicare cards and urged their removal. The Inspector General's report states: "Given the millions of individuals at risk for identity theft and OMB's directive to eliminate unnecessary uses of [Social Security numbers], we believe immediate action is needed to address this significant vulnerability."

I would appreciate hearing your views on this issue. Specifically, I would appreciate answers to the following questions:

* Do you agree that displaying Social Security numbers on Medicare cards increases the risk of identity theft and fraud?

* Do you support the Inspector General's recommendation that Social Security numbers should be removed from Medicare cards?

* If so, what steps are you taking to eliminate Social Security numbers from Medicare cards and to develop an alternative way to identify Medicare beneficiaries?

* If there are obstacles to removing Social Security numbers from Medicare cards, what are they and how do you propose overcoming them?

* Does CMS include Social Security numbers in documents it sends to Medicare beneficiaries and health care providers and does this increase the risk of identify theft and fraud?

* Does the 2006 report to Congress continue to contain CMS's best estimate of the cost and timeframe for removing Social Security numbers? Can you provide additional information to support this estimate?

Continuing to display Social Security numbers on Medicare identification cards and notices mailed to Medicare beneficiaries needlessly increases the risk of identity theft and fraud. Private health insurers have moved away from using Social Security numbers. Other federal agencies have too. It is time for CMS to do the same.

Thank you for your attention to this matter. If you have questions about this request, your office can contact my staff at 202-224-2152.

Sincerely,
Richard J. Durbin

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