Data compliance audit catches vulnerability in Maryland Medicaid program
February 2, 2012
As part of an inmate work program, Maryland's State Department of Health and Mental Hygiene routinely outsources minor data entry tasks to local correctional facilities. While this arrangement has been mutually beneficial, a recent data compliance audit revealed that administrative errors had exposed the Social Security number of several Medicaid recipients.
According to the Baltimore Sun, data compliance mandates require the personally identifiable information contained in the Medicaid documents to be redacted prior to processing. However, a recent data audit completed by Maryland State Legislative Services suggested that some of the claims that appeared in the state database left Social Security numbers readily available.
In a statement emailed to the Sun by Department of Public Safety and Correctional Services spokesman Rick Binetti explained that the error only appeared approximately once per 1,000 cases reviewed and was likely related to medical offices mistakenly using a Social Security number to identify patients. He also emphasized the level of strict security within the prison, suggesting that inmates would not have been able to record the information or otherwise abuse privileges. The processing room contained four surveillance cameras, supervisory staff and inmates were searched prior to exit.
As a result of the controversy, auditors mandated the termination of the inmate work arrangement in early November on the grounds that the facility could not ensure that data compliance standards could be upheld. But despite the potentially dangerous loophole in media management strategy, some are suggesting that this move is an overreaction to an anomaly in a practice that has been around for decades. The elimination of this cost-effective arrangement is also framed by concerns for the state budget crisis.
"We estimate that it will cost approximately $250,000 or more a year to use the new vendor," one DHMH spokeswoman told the news source.
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