Medical data on Blue Cross members may be lost

A CD holding medical and other personal data of about 75,000 members of Empire Blue Cross and Blue Shield has disappeared.
The New York Times

The story "Medical data on Blue Cross members may be lost" published March 14, 2007 at 6:11 AM is no longer available on CNET News.

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[lggirl]

Sneaker net - High tech...

Yeah this article seems official... Almost inconceivable that a company like this is still administering the old 'sneaker net' method, with a disc. And removing encryption before transport. Dang.

[mikekrause]

PROSECUTE COMPANIES THAT ALLOW SUCH SHODDY BUSINESS PRACTICES!

These companies are only going to learn when you hit them and hit them hard in the pocketbook when they do something as stupid as allowing sensitive data on a CD, a laptop, or any other portable medium. This data should be behind lock and key in a data center and accessible only that way.<br /><br />This problem just keeps getting worse, and there really isn't much being done, because the responsible parties aren't being punished. If it's currently not illegal to carry such sensitive information on portable media, then make it illegal!

[Stating]

Congress Should Outlaw Insurance Outsourcing

The common thread here is that BC outsourced processing to second parties. Our new Democratic Congress should immediately hold hearings on insurance company data processing practices, and sponsor legislation to outlaw outsourcing. <br /><br />I am also concerned that as the medical industry moves to electronically share more and more patient data with other healthacre providers, under the guise of lowering administrative costs, the magnitude of a data breach increases exponentially. Imagine a situation where 100 million patient records are "lost".

[Marcus Westrup]

Lets see,

Assuming this information is enough to allow you to form complete ID's. At the going black market rate of $6 a profile, that works out to say, 4.5 million worth of data.<br /><br />Ever see a Bank move a few million in cash with a taxi cab? No? Then why put so much value in the hands of someone who cannot/will not protect it!<br />Information is the new currency. It has real value and Must be protected as such.