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ACA Health Exchange Contractors Have History of Security Failures

Lucas123 writes "Two of the contractors involved in developing online health insurance exchanges under the Affordable Care Act, which have been plagued by technical problems since launching this month, have had serious data security issues in the past. Quality Software Services developed the software for the Affordable Care Act's data services hub and oversaw development of tools to connect the hub to the databases of other federal agencies. Last June, an audit report by the Health and Human Services Inspector General found QSS failed to adhere to federal security standards (PDF) in delivering IT testing services for the Centers for Medicare & Medicaid Services. Additionally, services firm Serco suffered a major security breach in 2012. Serco won a five-year $1.3 billion contract to process and verify paper applications for health insurance via the online exchanges. Serco's breach exposed sensitive data of more than 123,000 members of the Thrift Savings Plan, a $313 billion retirement plan run by the U.S. Federal Retirement Thrift Investment Board. The exposed data included full names, addresses, Social Security Numbers, financial account information, and bank routing information."

34 of 144 comments (clear)

  1. SURPRISE! by Jhon · · Score: 3, Insightful

    It's bad enough we have private industry in charge of much of our private information. At least THEY can be held accountable and sued or fined out of existence or at least suffer PR so bad that their business fails.

    When the Government is in charge, what are you going to do? Sue them? Great. You win money from every tax payer and the problem wont get fixed -- it will just be more expensive to run -- for every tax payer.

  2. Isn't this universal? by JDG1980 · · Score: 4, Insightful

    Are there any contractors that don't have a history of security failures?

    The problem isn't with this company, it's with the federal procurement process, which favors large corporations that can handle ridiculous amounts of paperwork over companies that might actually be able to get the job done.

    Frankly, I'm amazed the PPACA website came out as well as it did. Most large IT contract jobs, whether public or private sector, are much, much worse. The typical outcome for a multi-million-dollar IT contract project is massive delays, substantial budget overruns, and poor/missing functionality.

    1. Re:Isn't this universal? by avandesande · · Score: 2

      At least they could have given a US company an opportunity to screw this up....

      --
      love is just extroverted narcissism
    2. Re:Isn't this universal? by LurkerXXX · · Score: 3, Informative

      By US company, do you mean companies like IBM, Northrop Grumman, Verizon, Rand Corporation? They did.

      http://reporting.sunlightfoundation.com/2013/aca-contractors/

    3. Re:Isn't this universal? by cold+fjord · · Score: 2

      Frankly, I'm amazed the PPACA website came out as well as it did. Most large IT contract jobs, whether public or private sector, are much, much worse. The typical outcome for a multi-million-dollar IT contract project is massive delays, substantial budget overruns, and poor/missing functionality

      The Obamacare website is a typical, or worse. The portion of the site for Spanish speaking people has never worked at all, and Spanish speaking Americans are one of the key groups of the uninsured. The rest of the site is plagued by errors in the data provided to insurers causing all sorts of problems including multiple enrollments and cancellations, incorrect family relationships, and plenty of other problems.... when it works at all. It will be at least months late in working, and that work won't be done for free, so that is late and almost certainly over budget. There are technologists that have looked at the problems and some of them are recommending that it be scraped and start over. The Obamacare site was designed with less capacity than the site for Medicare Part D. It is a debacle of epic proportions. That is before you get to the policies some people are getting, or other repercussions of the law.

      You Can Keep Your Current Health Insurance.Or Not

      President Obama has promised people who liked their current doctor and health-care plan would be able to keep it as the Affordable Care continues to get implemented, but that’s proving not to be the case for many Americans.

      Insurance companies have sent out hundreds of thousands of letters to consumers in recent months cancelling their health-care plans.

      Kaiser Health News reports the cancelled policies “fall short” of the essential health benefits the ACA requires all plans include beginning Jan. 1, and are therefore not eligible for sale on the state and federally-run exchanges.

      The law requires plans to include coverage for maternity care, ambulatory services, prescription medications and more, additions that critics say will drive up premium costs for policyholders who may never use them.

      Among the insurance companies terminating policies are Kaiser Permanente in California, which sent notices to 160,000 policy holders; Highmark Pittsburgh, which dropped 20% of its individual market customers; and Independence Blue Cross, a major insurer in Philadelphia, eliminating 45% of its individual policies, Kaiser reports. The biggest hit comes in Florida, where insurer Florida Blue has dropped 300,000 policies.

      In some cases, policies for those with pre-existing conditions were terminated while other customers faced price increases since the rollout of the new insurance exchanges, according to Kaiser. Beginning in mid-September, for example, Blue Shield of California sent nearly 119,000 cancellation notices to individuals, and nearly two-thirds of this group were notified of rate increases, the nonprofit news service reports.

      --
      much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
    4. Re:Isn't this universal? by smooth+wombat · · Score: 5, Insightful

      and Spanish speaking Americans are one of the key groups of the uninsured.

      Then maybe they should learn to speak English instead of expecting the entire country to bend over backwards for them. The same goes the various Asian folks as well.

      It's all well and good to speak two languages, but you shouldn't expect people to accommodate you because you're too lazy. If I emigrated to Vietnam, should I expect them to bend over backwards for me because I didn't learn their language? They'd laugh at me day and night if I told them they need to go out of their way to post everything in English.

      But I guess it's easier to find a technical solution to a human problem than it is to fix the human problem.

      --
      We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
    5. Re:Isn't this universal? by Talderas · · Score: 2

      All nations have a de facto national language. Whatever language is used for writing the documents that establish the government/nation is essentially de facto.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    6. Re:Isn't this universal? by s.petry · · Score: 2

      So, I'd like to know who these people know to get the jobs.

      The simple answer is that you have to be listed in the Government books as a "prime" contractor. In order to get on the list, you have to ass kiss and lobby a whole lot. This is in addition to meeting more sensible criteria, but can at times discount the sensible criteria. Usually "Primes" are chosen for programs based on how much ass kissing they can do. There is some of the "good-ole boy" network going on, but in a few cases there is some logical favoritism.

      For example, if General Dynamics is doing well and Northrop has funding shortages that may cause a division closure, work will go to that division to support it. Consider that with ship building, there are very few companies that can build war ships. If one goes under, the US can be screwed if a war broke out. The Government does take logistics into _some_ consideration during contract negotiations.

      What I find very odd here is that the DOD requires that all employees and contractors be US Citizens. Since I left DOD about 3 years ago, I have heard rumors that some jobs can now be "green carded" but I won't verify that since it was not that way 3 years ago.

      Why would the US ACA work be any different? Why would they pay a Canadian company anything for American Government work to support American Citizens under a Law drafted and required in America? That part makes absolutely no sense to me, and quite frankly should be illegal. I know for a fact that there are numerous companies in Silicon Valley that could have done the work much faster and with better results.

      No offense to Canadian people is intended. I would hope that a Canadian would be pissed of if their tax dollars went to support a US company doing work _required_ by the Canadian Government to support Canadian laws and citizens.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

  3. Question by Conspiracy_Of_Doves · · Score: 2

    The government department that contracted this company for the site, are they allowed to use any criteria other than the contract bid amount to decide who to go with? Are they required to go with the lowest bidder, or are they allowed to look at the company history when deciding who to hire?

  4. is there anyone here.... by phantomfive · · Score: 4, Insightful

    Is there anyone here who had any doubt that the health exchange system would have serious security problems, given how many problems it's had, and security bugs being harder to avoid than many other types of bugs?

    The worst part is, since this system integrates with the department of homeland security and the IRS, you don't even necessarily need to use the system for a security vulnerability to affect you.......

    --
    "First they came for the slanderers and i said nothing."
  5. Outsourced Lowest Bidder syndrome by Isca · · Score: 4, Insightful

    This is what happens when you don't hire people in the agencies with technical abilities to even be able to oversee the implementation of complex systems.

    Privatization is good as long as you actually have competent people with technological expertise to oversee the development. Outsourcing all of this to the lowest bidder, then that company outsourcing components to the lowest bidder (and so on, and so forth) always causes these type of issues. We need technologist inside the government that can actually manage these projects.

  6. Re:How is this possible? by Isca · · Score: 3, Informative

    A large part of it is who you know to get your foot in the door. Once you've done government projects it's easier to land more contracts. I suspect in this company's case that the breach happened after they had already signed contracts to work on this project (at least with Serco)

  7. Yeah, so what? by mark_reh · · Score: 2

    It's been obvious for months to even the most internet-ignorant that there is no such thing as security on-line. The main concern with regard to health records security is that health insurance companies would deny coverage to people with preexisting conditions based on evidence in medical records. That's been fixed, at least in theory, by obamacare, if they ever manage to get it up and running.

    Of course, the real fix would have been to get the insurance companies out of the health insurance business altogether with a single payer system, but we are too stupid to vote for something like that. Even if we did, the insurance lobby's votes mean much more than votes of citizens going to the polls, so even if the majority came to their senses and demanded a single-payer system, it would not happen.

    OK, so we'll get more targeted spam about incontinence products, birth control, flatulence control, boner pills, etc. That will just make spam filters work a little harder.

    1. Re:Yeah, so what? by phantomfive · · Score: 2

      The main concern with regard to health records security is that health insurance companies would deny coverage to people with preexisting conditions based on evidence in medical records.

      The main concern is someone applying for a credit card with your name, or otherwise borrowing your identity.

      --
      "First they came for the slanderers and i said nothing."
    2. Re:Yeah, so what? by mcgrew · · Score: 2, Insightful

      The main concern with regard to health records security is that health insurance companies would deny coverage to people with preexisting conditions based on evidence in medical records. That's been fixed, at least in theory, by obamacare, if they ever manage to get it up and running.

      The ACA was passed and signed and gone through the courts; it's the law. Obamacare is in fact up and running, what's not is the federal web site.

      Your state's isn't in place? That isn't the Feds' fault, it's your state government's. Illinois' is in place, and we have the most dysfunctional government in the US. Why isn't yours?

      Of course, the real fix would have been to get the insurance companies out of the health insurance business altogether with a single payer system

      I'd mod you up if I had points. The reason the US has such expensive health care is the insurance companies. They're simply parasitic middlemen who do nothing but add cost.

    3. Re:Yeah, so what? by rsborg · · Score: 2

      I'd mod you up if I had points. The reason the US has such expensive health care is the insurance companies. They're simply parasitic middlemen who do nothing but add cost.

      Please don't forget about two other major reasons "healthcare" is so expensive here in the states: 1) Medical device companies that charge an arm and a leg for basic supplies and 2) Big Pharma, that for some reason (well, billion$ of reasons, actually) lobby to prevent organizations like Medicare from negotiating perscription drug costs.

      Insurance companies are evil, but with ACA, their evil has been toned down considerably (no recission from pre-existing conditions + medical loss ratio + fallback of state exchanges) and if things with Obamacare progress, we might get more single-payer down the road.

      I see ACA/Obamacare like hybrid gas-engine cars (ie, Prius) - by straddling the private and public insurance options, the road is eased such that a more moderate progression happens. Whether you feel this progressive approach is wise or not is another matter.

      --
      Make sure everyone's vote counts: Verified Voting
  8. Re:We need to start throwing people in jail. by Bodhammer · · Score: 2
    --
    "I say we take off, nuke the site from orbit. It's the only way to be sure."
  9. Problem of selection by satsuke · · Score: 2

    The larger problem isn't the actual contractor, it's in the selection process.

    At least, the companies that get these huge jobs are the ones that can successfully navigate the bidding process, as well as those that have a track record of complying with that process.

    It's a matter of the metrics used not matching the result desired.

    ACA/Obamacare health exchanges have had a lot of screwups, but I don't know if it'd work any other way initially (based on the fact that there are hundreds of agencies and different systems to interact with,. any end to end testing would have to be on "friendly" / fake results.

  10. Government Contracting is a rats nest by Sedated2000 · · Score: 5, Informative

    The processes and hoops you have to jump through in order to respond to their requests for proposal are ridiculously complicated. Way too often companies who are not qualified get the contract merely because they knew how to play the system.

    The government has programs to support small businesses like 8a for disadvantaged, one for businesses owned by disabled Vets, one for women owned. This does help some, but more often than not those companies are just paid so that bigger companies can bid for work and use them as the vehicle to get it. In my experience as a government contractor for most of my career I've seen countless scenarios of companies bidding for 8 resources on a task but really only using 2. I've seen them work on contracts for over a decade, and despite horrible execution of the project they continue to win the re-compete because they'll purposely squirrel away anyone who can help a new contract winner. They'll eat the cost and give people useless jobs at their corporate offices just to attempt to make the new contracting company fail.

    There is also a terrible history of nepotism involved. The entire system is abused. Officers have even set up companies and awarded contracts to themselves right before retirement. When they leave they have a ready made contracting company complete with an ongoing contract and perhaps one or two for their past performance record already. By the time they're caught, they are fined a million or so which at that point is small price to pay for them. They just had the world's best interest free business startup loan. Yes, I have first-hand knowledge of one such instance of this and I know it is definitely not an isolated incident.

    Here is an example of waste: When I was on one of my last contracts I spent months doing nothing of real consequence. Through some weird situation I was left with no project manager and no tasks. I informed all of the management who would listen, and requested work. I began to worry I'd be cut, along with the worry that if I sat idle my hard-earned skills would dull. I found another job and quit. I received a call from the vice president of the company telling me she was hearing what a great job I was doing and that they wanted to offer me a substantial raise to stay. It was then I realized they didn't care what I did. They could bill for me. By showing up I was doing a "good job". I couldn't take it and left.

  11. Well.. by TechyImmigrant · · Score: 3, Insightful

    While it may be unsurprising that a government contractor can't get security right, expecting anyone to adhere to government security specifications is unreasonable. Take a look at them, they are a vast mess of poorly written hand waving. There are some with specifics (E.G. some of the crypto algorithm stuff), but the balance of it is 'framework' crap.

    You can make an honest job of adhering to federal computer security specs, but it's always possible to dig up another spec somewhere that contradicts it.

    --
    I should use this sig to advertise my book ISBN-13 : 978-1501515132.
  12. And they hire the best H1B candidates they can too by Virtucon · · Score: 2, Insightful

    They're just a body shop living the H1B dream.

    I find it somewhat repugnant that a US Healthcare website is being done by a slipshod vendor who relies on H1B staff for delivery and can't follow FIPS 200 standards? That's a no-brainer for anybody dealing with any Federal agency.

    https://oig.hhs.gov/oas/reports/region4/41205045.pdf

    QSSI had not sufficiently implemented Federal requirements for information system security controls over USB ports and devices. Specifically, QSSI had not: (1) listed essential system services or ports in its system security plan or (2) disabled, prohibited, or restricted the use of unauthorized USB device access. QSSI had not implemented USB security controls because management had not updated its USB control policies and procedures. As a result of QSSI’s insufficient controls over USB ports and devices, the PII of over 6 million Medicare beneficiaries was at greater risk from malware, inappropriate access, or theft.

    So Personally Identifiable Information for over 6 Million Medicare beneficiaries wasn't protected and they still are working and billing to provide shitty software. I wonder how much of this is now in the hands if identity thieves selling Fullz..

    your government at work folks, what a wonderful sight to behold.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  13. Fifty-five contractors by Dachannien · · Score: 5, Insightful

    Just the fact that there were 55 different contractors working on healthcare.gov is reason enough to suspect that major security flaws crept in.

    The fact that the website was opened before any appreciable amount of testing was done is reason enough to suspect that most of those flaws are still undiscovered and uncorrected.

    The government's project managers didn't even come up with a full specification for the largest contractor until this past Spring, with the expectation that everything would be done and ready for business on 1 October. It's a total clusterfuck, the true scope of which likely won't be discovered for several months.

    http://www.newyorker.com/online/blogs/elements/2013/10/why-the-healthcaregov-train-wreck-happened-in-slow-motion.html

  14. what we need by wbr1 · · Score: 2

    Is something like angieslist for government contracts and a mandate to force its use. Now, who do we contract to build it?

    --
    Silence is a state of mime.
  15. Open Source It by ZeroSerenity · · Score: 3, Interesting
    --
    For those who seek perfection there can be no rest on this side of the grave.
  16. Oh great, cue the pompous chest-thumping by daboochmeister · · Score: 2

    Get ready for the torrent of people who've never dealt with gov't contracting who are just so sure they could do it better. Dunning-Krueger in the house, like usual on /.

    --
    "Ahh! I see you're in that indeterminate Schrodinger state where - oh, uh ... never mind." Dave Bucci
  17. The Grand Target by SuperKendall · · Score: 2

    The worse thing about a centralized system like healthcare.gov, is that it represents a tremendously juicy target for criminals of all kinds - from ID thieves to phishers that want some personal info to run a scam. Never mind this company, I'm not sure I trust ANYONE to develop a system that is secure against the number and complexity of attacks that will be made.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  18. Stop using contractors by Skapare · · Score: 2

    Use in-house employees instead. Hire well-qualified experienced employees, paid well (considering the costs of living in DC if they are not working from remote).

    --
    now we need to go OSS in diesel cars
    1. Re:Stop using contractors by ZombieBraintrust · · Score: 4, Interesting

      the biggest contractor, CGI Federal, was awarded its $94 million contract in December 2011. But the government was so slow in issuing specifications that the firm did not start writing software code until this spring. As late as the last week of September, officials were still changing features of the Web site.

      If there is no specification then your going to get a crap product. If they started in Spring then there is no way they finished in time to do several months of testing, bug fixing, and regeressing testing.

  19. You're surprised? by Overzeetop · · Score: 3, Insightful

    List all the companies who can, in under a year, put together a $50-400M (take you pick at the number) software system to service, conservatively, 30 million people in a day and interface with legacy systems from multiple governmental agencies.

    Cross off everyone on the list who isn't set up to do government contracting
    Cross off everyone on the list who can't meet HIPAA standards
    Cross off everyone who hasn't rolled out at least three systems of similar size and complexity in the past 5 years
    Cross off everyone who is headed by a foreign national

    You're list is going to be very, very short. I'd have had you cross out those with past roll-out failures or problems, but that would have given you a blank piece of paper to start with.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  20. Re:And they hire the best H1B candidates they can by ZombieBraintrust · · Score: 3, Insightful

    Why is this racist crap modded up. I work with H1Bs and most of them went to better colleges than I did and have better degrees than I do. Were talking about people with 10, 15 years of experiance. Now some outsourcing outfits hire people directly out of college. Quality can be low with these teams because there is alot of turnover and poor communication with an offsite team. But those people tend to work in India for a few years. The compitition for visas is high and people with no experiance don't normally get them.

  21. Re:A few problems with that list... by bzipitidoo · · Score: 5, Insightful

    I've done some work as a government contractor. It's messy. They demand that you account for every hour. If you are working on 3 different projects, you have to fill out a timesheet in which you detail which hours of every day you spent on each of those 3 projects. This sort of thing misses the point that it's results that count, not hours.

    They are keenly aware of the public perception of them as bungling bureaucrats. Consequently, they can be extremely pushy and demanding. Often they bear down so hard that it is counterproductive.

    They're also paranoid control freaks. They want contractors to work on computer systems that are under their control. Instead of working on your own equipment in your own offices, they'll insist you use their facilities. Then they provide antiquated, slow computers with ancient versions of Windows, and take weeks to getting around to details like installing a phone line. There are also a ton of rules. They'll want you to pay for a cell phone, but they don't want your cell phone to have any privacy. You basically need permission to sneeze, and more permission to wipe your nose. Want to encrypt a hard drive? Maybe just keep a few encrypted files on a hard drive? Can't do that without authorization.

    It takes a good contractor to stop them from hamstringing a project with red tape. You have to trample upon all sorts of rules to get anything done, and you need a smooth management team to keep the bureaucrats from worrying about violations. They will overlook all kinds of petty violations as long as there are good results. Let a project falter though, and the piranhas come out.

    --
    Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
  22. My state exchange web site works fine. by rock_climbing_guy · · Score: 3, Insightful
    For what it's worth, I recently moved to Colorado and I've found that their state health insurance exchange web site works just fine. I was able to browse plans available within a few minutes.

    I think it goes to show that there's nothing extraordinary difficult about this web site. I suspect cronyism on the part of the federal government. How else can you explain that they paid ~ $600M for a web site that doesn't work. I think they could have handed that money to most anyone who posted to this discussion and gotten a better result.

    --
    Wh47 d1d j00 541, 31337 15n't t3h r0xor5 ne m0r3???
  23. This is pathetic. by Lendrick · · Score: 2

    I'm all in favor of the ACA. In fact, on the state level, they've done just fine (it's notable that the only reason the federal system is even necessary is because a number of states refused to do it).

    On the other hand, how the fuck did we end up with this crap? You cannot roll out a project to millions of users this quickly and without adequate load testing. Also, why the hell aren't the contractors American? All this lip service the Democrats pay every election year to eliminating tax breaks for outsourcing and they can't bother to use American companies that will guarantee the work won't be subcontracted to some other company outside the US?

    We actually have competent IT contracting firms in the US. They tend to be expensive, but they have enough experience that they can predict how long and how much it will cost to deliver working software. Ultimately, it ends up costing less in the long run to pay more up front, because the software actually does what you want it to do.

    (Of course, this might not be a matter of corruption rather than cost, but my points still apply.)

    1. Re:This is pathetic. by phantomfive · · Score: 3, Interesting

      On the other hand, how the fuck did we end up with this crap? You cannot roll out a project to millions of users this quickly and without adequate load testing.

      The did adequate load testing. The testing results said the site would fail under load. They released it anyway. The flaws are there, but they were not in the testing.

      --
      "First they came for the slanderers and i said nothing."