September 11, 2013, 4:37 PM — The central system built to support Affordable Care Act (ACA) health insurance exchanges has successfully completed security testing and is set begin operating on October 1, the Centers for Medicare & Medicaid Services (CMS) announced Wednesday.
The CMS said that an independent security controls assessment conducted last month found that the Federal Services Data Hub complies with all federal security requirements.
The privacy and security of consumer data is a "top priority" for the CMS and the U.S. Department of Health and Human Services (HHS), which will implement the ACA, which was passed by Congress and signed by President Barack Obama in 2010. "The Hub and its associated systems have been built with state-of-the art business processes based on federal and industry standards," the CMS said in a statement.
The data hub, often been referred to as the Obamacare Hub, has been a focal point of concern by several privacy and advocacy groups.
Described by CMS as a routing tool, the hub is designed to let state and federal facilitated healthcare marketplaces quickly verify the eligibility of individuals seeking insurance coverage. The system connects healthcare insurance exchanges with numerous federal government databases at agencies like the Social Security Administration, the Internal Revenue Services, the Department of Homeland Security and the Department of Veterans Affairs.
The Hub itself will not store any data; it's designed to move information between the federal database systems and the marketplaces. "The Hub increases efficiency and security by eliminating the need for each Marketplace, Medicaid agency....to set up separate data connections to each database," the CMS said.
Some critics, though, contend that the Hub is a recipe for disaster.
For instance, The Heritage Foundation earlier this month cautioned that the data hub could expose many Americans to identity fraud. Those using the system to verify insurance eligibility will have easy access to sensitive personal information including bank account, Social Security and insurance data, it said.
Advocacy group Citizens Council for Health Freedom earlier this year contended data security is impossible given the interconnectedness of the hub system. While government officials tout health insurance exchanges as innocuous, easy-to-use portals, they are in reality extensive government data-sharing systems that lack security controls, the group had warned in a statement.