Chairman Tauzin

Prepared Witness Testimony

The House Committee on Energy and Commerce

W.J. "Billy" Tauzin, Chairman

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How Secure is Private medical Information? A Review of Computer Security at the Health Care Financing Administration and Its Medicare Contractors.

Subcommittee on Oversight and Investigations
May 23, 2001

 

 

 
 

Prepared Statement of The Honorable Billy Tauzin

Thank you, Mr. Chairman, and let me commend you for holding this very timely hearing on a topic of such great importance to the American people – the protection of their privacy and their private information.

Due in part to the Internet, Americans today are paying greater attention to privacy protections. But I don’t think that many people realize the extent to which the ongoing debate over privacy is so closely related to the issue of computer security. That is one reason why this Committee has been conducting an investigation into the adequacy of Federal efforts to protect our nation’s cyber infrastructure and the vast amounts of sensitive data stored on Federal computers.

Last month, the Subcommittee held a hearing that showed just how easily Federal computer systems could be penetrated by hackers. At that hearing, we saw first hand just how easily a team of 20-something "ethical hackers" could, in minutes, hack into government computers, crack passwords, and escalate their privileges to allow them to get control of entire computer networks.

Today’s hearing continues our investigation into Federal computer security and highlights the results of the Committee’s review of the Health Care Financing Administration, or HCFA. Like Chairman Greenwood, I am pleased to learn that HCFA has been doing a better job than many other agencies in working to address computer security vulnerabilities. But HCFA is an agency that must do better than most agencies.

The security of the Medicare claims system is a matter that HCFA and all of us must take very seriously -- for it is one of the most critical Federal assets, containing vast amounts of personally identifiable private medical information. And there is no doubt that HCFA can and must do better in this area. This hearing will explore the very real security vulnerabilities that face HCFA, and the serious management challenges the agency must address in order to properly secure the computer networks that make the Medicare claims system work.

Let me highlight just one of these issues, namely HCFA’s failure to conduct sufficient oversight and testing of its Medicare contractors and the contractors such as IBM and AT&T that provide critical network services to HCFA. I share Chairman Greenwood’s concerns that HCFA has not been aggressive enough in pushing these contractors to allow independent tests of their systems. In an area as sensitive as this one, we simply cannot take their assurances of security at face value -- not because they are incompetent or deceptive, but simply because they may not be as secure as they would like to think.

I want to strongly encourage the agency to go further in this area, not just with respect to its contractors’ networks, but also its own. Without rigorous, independent testing, we simply cannot assure the American people that their private medical information is indeed protected.

Finally, I want to congratulate Chairman Greenwood for the clear successes this investigation already has produced in terms of pressing the Department and HCFA to make certain improvements to the management of security at HCFA prior to this hearing today.

I look forward to the testimony from our witnesses today, and continuing to work with HCFA and this Committee as it works to address these concerns.

 
 

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