
The GAO surveyed all federal Medicare and TRICARE contractors and all state Medicaid agencies totaling 378 different entities. The purpose was to find out if these entities “(1) outsource services--domestically or offshore--and (2) must notify federal agencies when privacy breaches occur.”
The results ranged from 69 percent for Medicare Advantage contractors to 80 percent for Medicaid agencies. In addition more than 90 percent of Medicare contractors and state Medicaid agencies and 63 percent of TRICARE contractors reported some domestic outsourcing in 2005.
When it came to privacy breaches “47 percent of Medicare Advantage contractors reported privacy breaches within the past 2 years, as did 44 percent of Medicaid agencies, 42 percent of Medicare FFS contractors, and 38 percent of TRICARE contractors.”
Doesn’t the percentage of privacy breaches seem unnervingly high to you?


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