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Medicaid contractor loses provider's personal information

Posted March 8, 2013

N.C. Department of Health and Human Services

— The contractor building North Carolina's over-budget and overdue Medicaid billing system has lost a thumb drive containing the personal information of thousands of Medicaid providers.

Officials with the North Carolina Department of Health and Human Services and Computer Sciences Corp. announced the loss late Friday afternoon.

According to DHHS, 1,182 North Carolina medical providers were affected, but information regarding more than 50,000 providers nationwide was compromised.

"The only providers involved are those prohibited by the federal government from participating in the Medicare, Medicaid and all other federal health care programs," the company said in a statement. "Following a CSC-couriered interoffice delivery between CSC facilities in North Carolina, a USB thumb drive of medical provider information is unaccounted for. The provider data included provider names, Social Security numbers, addresses and dates of birth and was stored unencrypted on the thumb drive. The data does not include any patient-related information."

Providers who have questions can contact a dedicated CSC information hotline set up for this incident at 1-800-957-7154.

“We expect our vendors to maintain the security of information,” DHHS Secretary Aldona Wos said in a statement. “I have instructed CSC that North Carolina expects an independent third-party assessment to assure CSC’s adherence to required security standards.”

5 Comments

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  • Terkel Mar 12, 2013

    I just heard on the news that the "contractor" has been placed on "administrative leave". That suggests it was a State emp.

    There are several "contractors" who are also retired State emps (who wouldn't share their knowledge in order to keep their job security) collecting retirement AND working a nice little "second" job for nice pay.

    Can you find out and publish the name, just like when LEO's are put on admin leave after an incident?

  • francellaposton Mar 11, 2013

    The Medicaid Director, Carol Steckel, has stated that the identified problems will be fixed by June 30th of this year. This article is about Computer Sciences Corp., a company that does the billing for HHS. The need is to upgrade computer and get rid of inefficient for-profit companies. I suspect the Governor has little knowledge of Medicaid.

  • gcannon Mar 9, 2013

    Gov McC, you were so right not to expand Medicaid. Please, continue to work with Dr Wos and Ms Wood to keep cleaning house. DMA in particular feels itself above the law. Time to round up the "cowboys" and put them out to pasture.

    I concur with this 100% and applaud Governor McCrory's stance on this!

  • tigo7 Mar 9, 2013

    Another example of the incompetence tied to health care!

  • Terkel Mar 8, 2013

    Gov McC, you were so right not to expand Medicaid. Please, continue to work with Dr Wos and Ms Wood to keep cleaning house. DMA in particular feels itself above the law. Time to round up the "cowboys" and put them out to pasture.