Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2006

Floor Speech

DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2006 -- (Senate - October 27, 2005)

BREAK IN TRANSCRIPT

Mr. DURBIN. Mr. President, according to the Federal Trade Commission, identity theft is the fastest growing crime in America, striking 27.3 million Americans who have been victims in the last 5 years. Not only is identity theft increasing, it is becoming more expensive.

Several years ago, I received a phone call from a credit agency at my home in Springfield, IL. They said: Richard Durbin, we knew that we would finally catch up with you.

I said: What are you talking about?

They said: It is your credit card charges with a major chain of stores that were incurred in Denver, CO.

I said: I didn't incur any credit card charges.

It turned out my identity had been stolen. It took some time, and I finally got it straightened out, but I was one of the lucky ones.

Today's victims of identity theft spend an average of $1,400 in out-of-pocket expenses to remedy their situation, an increase of 85 percent from years past.

A recent survey indicates that identity theft cost Americans $52.6 billion in 2004--much of it accrued by businesses forced to write-off fraudulent charges.

According to the Federal Trade Commission, seniors are more vulnerable to fraud than other demographic groups.

In 2004, consumers over the age of 50 reported $152 million in fraud losses to the FTC, which is likely only a small fraction of the fraud that took place.

A Social Security number is a key for an identity thief. With it, he or she can open a new credit card or bank account, as well as access existing accounts.

One of the main actions Federal, State and local governments instruct you to take in protecting yourself from identity theft is guarding your Social Security number.

Many States and local governments have gone further to protect their citizens. Twelve States have passed laws restricting the use of Social Security numbers, including Illinois where private insurers are prohibited from using Social Security numbers as patient identifiers.

Meanwhile, the Federal Government continues to print Social Security numbers on Medicare cards, leaving 40 million seniors with their Social Security numbers in plain sight.

Almost one-third of identity thieves get access to your personal information by stealing your wallet, checkbook or credit card.

If a senior's wallet is stolen, access to a Social Security number would be simple. Just look on their Medicare card.

Walter Hornby from Bartlett, IL wrote to me to tell me about what he calls a ``Catch-22 situation.'' After he fell victim to identity theft, he was advised never to carry anything in his wallet that includes his Social Security number.

Mr. Hornby wrote:

All Medicare cards have Social Security numbers emblazoned on them in large print. I am sure many seniors carry their cards with them as proof of insurance, leaving them open to identity theft.

Mr. Hornby called CMS and the Social Security Administration, but was told it would ``take an act of Congress to correct this situation.'' That is why we are here today.

According to a recent poll by the AARP, most seniors agree with Mr. Hornby. What is the percent of adults over the age of 50 who want Social Security numbers to appear on various documents? They asked of these seniors, How about Medicare cards? Yes, 25 percent; no, 70 percent. Seniors get it. They understand their vulnerability, but they don't know which way to turn. You need a Medicare card if you go to a hospital or provider. They want to have easy access, but there sits their Social Security number which could turn out making them vulnerable to identity theft.

A reporter asked a CMS spokesperson about whether the agency plans to change beneficiary identity numbers as a result of the rise of identity theft from seniors, and here is what he said:

We're looking at all sorts of alternatives, but right now our greatest priority is implementing the prescription drug program. We
continue to recommend treating your Social Security card like a credit card.

That is a good recommendation. But if you lose your wallet or your purse, you know what might happen. When seniors write to CMS asking to have their Social Security number removed from Medicare documents, CMS sends a reply:

Medicare is required to protect individual privacy and confidentiality in accordance with applicable laws.

CMS is passing the buck. The buck stops here. It stops in Congress. We are abiding by the current law, they say, and that is good enough. But it really is not good enough.

Bob Filner is a Congressman from San Diego, and he is a person with whom I worked and respect very much. He was attentive to this issue and raised it in consideration of this appropriations bill in the House. Congressman Filner said, in very simple and straightforward language: No money can be spent on this bill to further issue these Medicare cards that contain Social Security numbers.

The amendment passed with a strong bipartisan vote. But if you look at it, we are afraid that perhaps it went too far--in the right direction but maybe too far. The CMS said there is no way they could cut off immediately the issuance of these cards. So we are placed in a difficult position. We know the problem, and we want to correct it. Cutting off funds and trying to do it immediately may be something that is just unmanageable and cannot be achieved.

My amendment would require the CMS to send a report to Congress by the end of next June outlining how the agency will expeditiously go about changing the system of patient identifiers and how much it will cost. We put the CMS on notice that this is a problem they need to help us solve. They can't pass the buck off to another year and another year of possible identity theft for so many senior citizens.

It is time for the Federal Government to step up the fight against identity theft. We have it in our power to make it much harder for identity thieves who hurt our Nation's seniors, and I commend amendment No. 2196, which I have introduced at this point, to all my colleagues on both sides of the aisle and ask for their bipartisan support.

I yield the floor.

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