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Why Chinese Hackers Would Want US Hospital Patient Data

itwbennett (1594911) writes In a follow-up to yesterday's story about the Chinese hackers who stole hospital data of 4.5 million patients, IDG News Service's Martyn Williams set out to learn why the data, which didn't include credit card information, was so valuable. The answer is depressingly simple: people without health insurance can potentially get treatment by using medical data of one of the hacking victims. John Halamka, chief information officer of the Beth Israel Deaconess Medical Center and chairman of the New England Healthcare Exchange Network, said a medical record can be worth between $50 and $250 to the right customer — many times more than the amount typically paid for a credit card number, or the cents paid for a user name and password. "If I am one of the 50 million Americans who are uninsured ... and I need a million-dollar heart transplant, for $250 I can get a complete medical record including insurance company details," he said.

7 of 171 comments (clear)

  1. uh-huh by Anonymous Coward · · Score: 5, Insightful

    Are there documented cases where the uninsured poor have bought blackmarket medical records to get healthcare? This seem preposterous.

    1. Re:uh-huh by Anonymous Coward · · Score: 5, Informative

      Um, No. In a Government funded Health system Such as in NZ, well below your predicted 1mil.

      Quote; You might also have a hard time pointing the finger at the real crooks here.

      not really, the crooks are your govt selling your health care to the highest bidder.

      cardiac bypass (heart surgery): $37,000-$45,000
      valve replacement (heart surgery): $43,000-$53,000
      angiogram (diagnostic test): $3600-$4400
      angioplasty with 2 stents (heart surgery): $17,000-$20,000
      total hysterectomy (surgery): $10,000-$13,000
      laparoscopic excision of endometriosis (surgery): $4900-$6000
      prostate removal (cancer surgery): $10,000-$12,000
      prostate brachytherapy (cancer surgery): $21,000-$25,000
      excision of cancerous skin lesion: $1000-$1500
      colonoscopy (diagnostic test): $1500-$1800
      radical mastectomy (breast cancer surgery): $8300-$10,000
      radiation therapy (one course of treatment): $15,000-$27,000
      gastroscopy (diagnostic test): $1100-$1300
      laparoscopic cholecystectomy (gall bladder surgery): $6800-$8400
      total hip replacement (surgery): $18,000-$22,000
      total knee replacement (surgery): $19,000-$23,000
      cataract removal (eye surgery): $3500-$4000
      thyroidectomy (surgery): $8300-$10,200
      endoscopic sinus surgery: $6500-$7900
      wisdom teeth removal: $1900-$2400
      varicose veins (both legs): $6300-$7800
      hernia repair: $5400-$6600
      knee arthroscopy: $4000-$5000
      biopsy: $1000-$1500
      MRI scan: $1000-$1200
      CT scan: $600-$800
      ultrasound: $150-$200.

      Link, http://www.everybody.co.nz/page-56d7ef0e-9e87-46ad-9ab9-843e76f8301e.aspx

  2. I'm not so sure.... by ColdWetDog · · Score: 5, Insightful

    The thesis is that you can waltz into a doctor's office AND a hospital with faked records and get the treatment needed. Basically the important bit is the insurance info - what has happened to "you" is less important than what you want to eventually happen to you (in the example given, a heart transplant).

    I kinda doubt this, at least in a general sense. First off, you can show all the insurance cards and 'insurance info' to the medical provider all you want. The provider is going to query the insurance company before doing anything expensive. Fine, you say, call them all you want, the 'patient' is insured (it's just not the right patient). Now comes the hard part. The minute that the insurance company starts getting claims from both Peoria and Trenton, NJ flags are going to go up. Other old records would be sought (for something big like a transplant or joint replacement) which would likely not match.

    Anything remotely resembling a heart transplant is going to fall apart unless both the real and fake patient have nearly identical physiques, ages and problems. More routine issues could go undetected for a while but persistent discrepancies would show up and as soon as the insurance company flagged the claim as problematic, big ticket items would be placed on hold until things go cleared up. When I worked in an early Medicaid HMO in the 1980's we had some problems with folks 'sharing' the Medicaid ID card (no picture, just a printout basically). It was pretty obvious when the patient's weight varied 30 pounds every other week. We soon insisted on photo ID.

    And, in fact, the feds also insist on photo ID these days. Yes, if you're bleeding out we don't ask for it up front but as soon as your blood pressure normalizes we're poking around to figure out just who you are.

    So it's possible that that full on medical records might be of value, but it's going to be much harder to monetize than a credit card number and likely would be of limited use. That doesn't mean that the information shouldn't be sealed up, of course. I'm just not sure how big a deal this is. And, in the case of the Community breach, they apparently did not get that information anyway.

    --
    Faster! Faster! Faster would be better!
    1. Re:I'm not so sure.... by Jason+Levine · · Score: 5, Interesting

      Maybe, but maybe not. I know someone whose identity was stolen and used by a criminal who was arrested. Despite the fact that the guy looks NOTHING like the criminal in question (different height, weight, skin color, etc), he found himself fired from his job for having a criminal record and harassed by police officers who just assumed he was the criminal. It took him years to get anyone to even listen to him and even then it took years to fix the problem as one fixed system would get "re-infected" as the bad data flowed back in from other systems.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  3. Re:Time for medicare for all in the usa by Charliemopps · · Score: 5, Informative

    Yes, because the single payer systems in Europe of trouble free right?

    I'm not saying we don't have an issue, but your 1 step solution is a joke. The same corruption, greed and poor administration that afflicts us now would continue in the new system. It would just include all the problems of government waste and politics as well.

    The problem in the US is states have enacted their own laws governing what treatment is required by law. So states that are pro-patient rights oppose allowing patients being able to seek insurance outside of the state as that would be an end run around their laws. As a result, patients cannot for any meaningful patients rights groups of a large enough size to make a difference in the healthcare market. There aren't enough doctors because younger doctors can make more money doing plastic surgery and other cosmetic specialty work, and the older doctors get pair so much they only feel the need to work 2 days a week. Tuition to medical schools in this country is borderline insane.

    This is a very complex issue and throwing black and white solutions at it while calling your opponents stupid will get your no-where.

  4. Re:Less likely government by SydShamino · · Score: 5, Interesting

    I'm amazed at how skillfully the finance and corporate community has ingrained "identity theft" into consumer's minds. (And yes, I'm using "consumer" instead of "citizen" on purpose.)

    If someone uses a fake credit card to buy items from a store, they have defrauded the store and the credit card company. It should be irrelevant whether the name on that card is fake, or belongs to some other uninvolved third party.

    And yet, the industry has managed to redirect the mindset and conversation to shift much of the blame onto that uninvolved third party, making them feel like they are the ones violated by this process, and leaving them with the mess to clean up while those defrauded only write off their losses after the third party goes through hoops to "prove" their own innocence. Meanwhile, there's rarely effort to go after the actual criminal at all.

    I understand the reasons why there is a credit market, but I reject the notion that what was once called fraud, perpetrated against a business that is responsible for their losses, is now theft against an unrelated third party that is guilty until proven innocent by the corporate megaliths that run the financial world.

    --
    It doesn't hurt to be nice.
  5. Re:Uninsured? by Ralph+Wiggam · · Score: 5, Insightful

    More than 7 million people now have insurance because of Obamacare.

    That's 7 million more people than would be insured under the Republic plan of "Fuck you. Walk it off."