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Proposed Bill Attempts to Reduce Senior Identity Theft
By
Michael A. Piekarz
Spectrum Staff Writer
A
newly-introduced bill in the U.S. Senate proposes an end to the practice
of placing Social Security numbers on Medicare cards in an effort
to protect Medicare beneficiaries from identity theft.
Dubbed “The Social Security Number Protection Act,” the legislation,
introduced by U.S. Senators Dick Durbin, D-Ill., Jeff Bingaman, D-N.M., and Herb
Kohl, D-Wis., would require the federal government to remove Social Security
numbers from Medicare identification cards and communications to Medicare beneficiaries.
Unlike other private and public organizations that no longer use Social Security
numbers on correspondence or identification due to the risk from identity thieves,
the Centers for Medicare and Medicaid Services (CMS) continues to use Social
Security numbers. CMS administers the Medicare program.
“Every year, millions of Americans are victims of identity theft – many
after their Social Security numbers are stolen. Instead of leading by example,
the federal government is lagging behind private health insurers and other public
agencies in protecting Medicare recipients from identity theft,” said Durbin.
The problem was identified nearly three years ago when Senator Durbin raised
concerns about the use of Social Security numbers on Medicare cards. At that
time, CMS issued a report to Congress that outlined the steps that would be required
to remove the numbers from Medicare cards, but no action was taken to implement
the recommended changes.
“CMS’s continued use of Social Security numbers on Medicare cards
needlessly places people at risk. Our bill ensures that a premium is placed on
security and that personal information is protected,” Durbin stated.
Identity theft is one of the fastest-growing crimes in the nation. Nearly 8.4
million people were victims of identity theft last year alone. These crimes accounted
for more than $49.3 billion in fraudulent charges. Often, the victims of identity
theft are seniors.
“It makes no sense for a CMS to continue exposing Medicare beneficiaries
to the risk of identity theft,” said Bingaman. “We should pass this
bill quickly, and fix this problem once and for all.”
The proposed legislation sets a timeframe for CMS to remove Social Security numbers
from Medicare cards and communications to beneficiaries.
Within three years, the Health and Human Services Secretary will be required
to implement procedures to eliminate the unnecessary collection, use and display
of the Social Security numbers of Medicare beneficiaries.
Also prohibited will be the display or the unencrypted electronic storage of
Social Security numbers on newly-issued Medicare cards. The same prohibition
will apply to all Medicare cards within five years, regardless of the date the
cards were issued.
Under the proposed legislation, the display of Social Security numbers on written
and electronic communications to Medicare beneficiaries will not be allowed unless
it’s essential for the operation of the Medicare program.
A 2008 report issued by the Inspector General of the Social Security Administration
concluded that: “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.”
“This is one of those clear-cut problems that is easy to fix. With identity
theft on the rise, removing Social Security numbers from Medicare beneficiary
cards is the smart thing to do,” said Senator Kohl, chairman of the U.S.
Senate Special Committee on Aging.
Further action on the legislation is pending in the Senate.
This page and its contents ©2008
Metropolitan News Company, Inc.
