Medicare data breach exposes 100,000 Americans' info
The Centers for Medicare & Medicaid Services (CMS) sent letters this week to those affected, confirming that hackers accessed sensitive data linked to Medicare.gov accounts.
Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM/NEWSLETTER
The breach traces back to suspicious activity starting in late 2023. According to CMS, cybercriminals used stolen personal data from external sources to fraudulently create Medicare.gov accounts.
That information included:
CMS began receiving alerts in May 2025 when people reported receiving account confirmation letters for accounts they had not created. This triggered an internal investigation. Hackers not only created unauthorized accounts but, in some cases, accessed additional sensitive data such as:
CMS has deactivated all affected accounts and is mailing new Medicare cards to the estimated 103,000 individuals affected. The agency says no confirmed identity theft cases have been reported yet. CMS stressed the action is being taken out of "an abundance of caution," but the breach raises questions about federal cybersecurity safeguards.
If you're one of the people affected by the Medicare data breach:
CMS is still investigating how the attackers obtained such accurate personal data and whether more individuals may be at risk.
So far, CMS has not identified the attackers. However, the use of valid personal information suggests that the hackers may have obtained data from prior breaches or leaks on other platforms. This breach reveals a troubling vulnerability in the federal healthcare system, where hackers can exploit existing data to create legitimate-looking accounts and access deeply personal medical information.
Here are five important steps you can take right now to protect your Medicare information and reduce your risk of identity theft after the breach.
Regularly check your Medicare and healthcare accounts for changes you did not make. Be cautious of unfamiliar services, charges or communications from providers you don't recognize.
In light of the Medicare data breach, where bad actors used valid personal details to create fake accounts, enrolling in a trusted identity theft protection service can offer an extra layer of defense. These services monitor your Social Security number, email, phone number and other sensitive data to alert you if it's being sold on the dark web or used to open fraudulent accounts.
Many top-rated services also help you freeze your credit and bank accounts and offer expert support if your identity is compromised. My top pick includes up to $1 million in identity theft insurance to cover stolen funds and legal fees, plus access to a U.S.-based fraud resolution team that helps you recover faster.
See my tips and best picks on how to protect yourself from identity theft at Cyberguy.com/IdentityTheft
Never share your Medicare number or card details with anyone over the phone or email, unless you initiated the contact and trust the source. Treat it like a credit card.
If you believe your information is being misused, remove it from the internet. A personal data removal service can help you remove all this personal information from the internet. It has a very clean interface and will scan 195 websites for your information and remove it and keep it removed.
Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com/DeleteGet a free scan to find out if your personal information is already out on the web: Cyberguy.com/FreeScan
If you notice suspicious activity, report it directly by calling 1-800-MEDICARE (1-800-633-4227) to report Medicare fraud. Also, file a report at IdentityTheft.gov to create a recovery plan with the Federal Trade Commission (FTC). This not only helps you recover faster but also contributes to broader investigations that protect others.
This Medicare breach may not have resulted in confirmed cases of identity theft so far, but that does not mean the situation should be taken lightly or dismissed as low risk. It took malicious actors less than two years to create over 100,000 fake Medicare accounts using valid personal information, which suggests a significant weakness in how sensitive data is being protected and monitored at the federal level.
Do you think healthcare organizations are doing enough to protect your data? Let us know by writing us at Cyberguy.com/Contact
Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM/NEWSLETTER
Copyright 2025 CyberGuy.com. All rights reserved.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Politico
an hour ago
- Politico
Choppy waters ahead for health insurers
Presented by With Lauren Gardner and Ruth Reader Driving the Day TRIPLE THREAT — Insurers face a number of pressures that could lead to a jump in out-of-pocket health costs for Americans: cuts to Medicaid, federal policy changes that could hit Obamacare enrollment and medical costs rising faster than expected, Kelly reports. Several health insurers were already on unstable financial footing even before President Donald Trump signed into law the 'big, beautiful bill' — which could lead to millions of people losing coverage. The looming changes now create more uncertainty that could lead to a downturn for the health insurance industry and a jump in premiums for Americans purchasing coverage. 'You have this perfect storm here of very large changes happening all at once,' said Ellen Montz, a managing director with advisory firm Manatt Health and a former CMS official during the Biden administration. 'They're looking at pricing, what is potentially coming down the pike, and we're going to see some very large, both gross and net, premium increases.' Both Centene and Molina Healthcare slashed their yearly financial guidance over the past few weeks amid unexpectedly high medical costs in Medicaid and Obamacare plans. And health insurance giant UnitedHealthcare lowered its guidance in May because of higher-than-anticipated Medicare Advantage costs. 'As we see these cost pressures continue to mount, as we see them go unaddressed and continue to snowball in their effect, the inevitable result is that we will see higher premiums,' said David Merritt, senior vice president of policy and advocacy at the Blue Cross Blue Shield Association. Why it matters: The Congressional Budget Office estimated that an earlier version of the 'big, beautiful bill,' combined with the expiration of the enhanced Obamacare subsidies at the end of this year and new Trump administration Affordable Care Act policies that make it more difficult to enroll, could cause nearly 17 million people to become uninsured. Cushioning the blow: Insurers are pushing Congress and the Trump administration to mitigate some of the fallout, warning lawmakers in competitive districts that their constituents will face widespread coverage disruptions if the policies are implemented. The industry's most pressing concern is the expiration of the enhanced subsidies — which Congress must extend within the next few months to avoid 'very sudden' and 'severe' cost hikes and coverage losses nationwide, said Mike Tuffin, the CEO of health insurance trade group AHIP. So far, few Republican lawmakers have expressed interest in extending the subsidies, which CBO has estimated at $335 billion over 10 years. 'We know over the last 30 years that when people's coverage is disrupted, their access to health care is disrupted, there's an immediate political response, and both parties have seen that in the past, and we want to prevent that,' Tuffin said. What's next: Insurers will start posting their 2025 second-quarter earnings over the next few weeks, which will provide some insight into how they might adjust to rising medical costs. It may also shed light on how they're factoring in looming federal changes to their pricing. First up is Elevance Health, which will report its earnings Thursday. WELCOME TO TUESDAY PULSE. U.S. ice cream makers are pledging to stop using artificial dyes by 2028 — another win for HHS Secretary Robert F. Kennedy Jr.'s Make America Healthy Again initiative. Send your tips, scoops and feedback to khooper@ and sgardner@ and follow along @kelhoops and @sophie_gardnerj. In Congress AUTISM SPEAKS ON THE HILL — Advocates from the group Autism Speaks will head to the Capitol today to urge lawmakers to fund recently reauthorized research and service programs in the wake of the GOP megabill's steep Medicaid cuts. While the group will acknowledge their concerns about how those cuts could impact autism programs in the states, it plans to focus on the annual appropriations process 'since that's the next thing up, and something that we want to try to ensure that we're at least maintaining the levels of funding for those programs,' David Sitcovsky, Autism Speaks' vice president of advocacy, told Lauren. Congress reauthorized the Autism CARES Act in December, which Autism Speaks says is the primary federal funding source for monitoring, research, services and training programs in the autism community. The law's programs are spread across the CDC, the Health Resources and Services Administration and the NIH. The group plans to underscore in their meetings that autism is a lifelong condition — not just a childhood disorder, as often emphasized by Health Secretary Robert F. Kennedy Jr. — for which many people need support as they age. 'It seems like most [of the] conversation about autism has been framed around childhood, and and I think what were really trying to do … is to remind people that [it's a] lifelong issue, and there are many adults who need better understanding and supportive services now,' said Dr. Andy Shih, Autism Speaks' chief science officer. At the Agencies DOC PAY OVERHAUL — The Centers for Medicare and Medicaid Services is proposing a boost in funding to doctors who participate in alternative payment models based on the quality of care delivered instead of individual services, POLITICO's Robert King reports. 'We're making it easier for seniors to access preventive services, incentivizing health care providers to deliver real results, and cracking down on abuse that drives up costs,' CMS Administrator Mehmet Oz said in a statement Monday when the agency released its proposed physician fee schedule that details changes to Medicare pay for 2026. What it means: Doctors participating in the models would receive a 3.83 percent boost to their payments starting in 2026. Doctors not participating in such models would get a 3.62 percent increase. Why it matters: If finalized, the rule would represent a departure from how CMS traditionally reimburses doctors. The agency typically has one rate update that applies to all doctors serving Medicare patients, regardless of whether they participate in an alternative payment model. Both Republican and Democratic administrations have sought to shift Medicare reimbursement away from payments for individual items or services. TECH TROUBLES — The Department of Veterans Affairs told a House panel Monday that it has implemented DOGE-directed cuts to optimize its IT infrastructure. But lawmakers say they want assurances that the agency's past problems with IT modernization won't be its future, Ruth reports. 'For years, this committee has highlighted the wasteful spending, the overbudget projects, poor outcomes that seem to come with all IT projects at the VA,' said Rep. Tom Barrett (R-Mich.), chair of the House Veterans Affairs' Technology Modernization Subcommittee. Since the beginning of the year, the VA's Office of Information and Technology has lost 1,100 employees — mostly from buy-out and early retirement offers — and its 2026 budget has shaved $500 million from its operating funding. Subcommittee ranking member Rep. Nikki Budzinski (D-Ill.) said she's concerned the cuts will undermine the agency's efforts. Eddie Pool, the VA's acting assistant secretary and chief information officer, assured lawmakers that more than three-quarters of the people who left the agency were going to retire soon. Why it matters: Veterans Affairs is in the midst of its latest attempt to update its IT infrastructure, including its electronic medical records system. The agency has been attempting to modernize since 2001 and has failed to do so multiple times, according to the Government Accountability Office. Carol Harris, the GAO's director of IT and cybersecurity, testified that the VA's IT office hasn't adequately taken stock of its workforce. For example, she said, it doesn't have an inventory of employees' current cybersecurity skills and competencies. The agency also hasn't comprehensively identified its current and future human capital needs, Harris added. The GAO has 26 open recommendations for improving the VA's IT and cybersecurity that it said the office still needs to complete. What's next: President Donald Trump recently announced his pick for chief information officer at the VA, Ryan Cote, who served as the Transportation Department's CIO in the first Trump administration. His confirmation hearing hasn't been scheduled yet. Health Costs MEDICAL DEBT RULE TOSSED OUT — A federal judge has overturned a Biden administration rule that would have removed $49 billion in medical debt from the credit reports of 15 million people, POLITICO's Katherine Hapgood reports. U.S. District Judge Sean Jordan of the Eastern District Court in Texas said the Consumer Financial Protection Bureau rule 'exceeds the bureau's statutory authority' and violates the law on permissible purposes of consumer reports. The decision aligns with the Trump administration's stance on the issue. The rule was finalized by then-CFPB Director Rohit Chopra, but the bureau under the Trump administration reversed its position on the rule and joined credit-reporting groups in challenging it. The rule had been set to take effect at the end of July. WHAT WE'RE READING POLITICO's Grace Yarrow and Rachel Shin report on how the White House doesn't plan to crack down on pesticides in farming. STAT's Lev Facher reports on an elite rehab center using GLP-1s to treat a range of addictions.
Fast Company
an hour ago
- Fast Company
Should primary care practices consider more complexity in their payment model portfolio?
It's a hell of a starting point: The work of providing primary care is already overwhelming. But trying to get paid for that work in the traditional fee-for-service (FFS) payment system has become unsustainable. From verifying ever-changing insurance eligibility to choosing from the library of 69,832 ICD-10 and 11,000 CPT codes to organize into a superbill—often with complex rules about billing for additional services, depending on the type of visit—every single patient encounter is an administrative gauntlet. Then there's the patient copay and coinsurance to process, along with weeks or months of delay to see what is ultimately reimbursed by the insurance company. All this complexity is paired with reimbursement rates that are not just falling behind inflation but declining over time. A recent study found Medicare reimbursement for physicians decreased by approximately 33% since 2001 when adjusted for practice cost inflation, and an additional 2.8% reimbursement cut went live at the start of 2025. It's no wonder that physicians in independent practices have said that 'rising administrative burdens' and 'low and falling payment rates' are a major threat to their success. Despite all these hurdles, independent practices are finding new ways to succeed—ways that, ironically, often involve leaning into more complexity, not less. For one primary care physician I'll call Dr. R, embracing new models isn't optional if she is going to continue providing care to 3,000 families in Hawaii seven days a week. She already moved almost half of her practice's revenue from FFS to capitation (per patient flat fee), but sharply declining reimbursement rates—combined with steep increases in costs like rent, supplies, and staffing—have put her practice in a difficult position. She's getting squeezed, and she says her practice needs to be testing new models and new income streams. As an economist, I view this as a strategy of portfolio diversification. A medical practice can add complexity to its revenue by taking on alternative reimbursement models, such as membership fees, while also testing participation in a value-based payment program. This portfolio diversification is increasingly key to financial sustainability for primary care practices, which have been especially undervalued in the transactional FFS models compared to specialties. Primary care's value comes from cognitively complex, relationship-driven care, sometimes for decades and across generations—an approach much more aligned with membership, capitation, and rewarding for outcomes than reimbursing for services delivered in 15-minute increments. Dr. R is not alone. Many of my company's primary care customers are testing new models. In a survey of our customers, clinicians reported that getting help with 'alternative payment models' was the top request (34%) to respond to instability in the sector today. According to the AMA, more independent practices are moving away from a full FFS approach. This complexity is something that startup medical practices have also been testing for a while. There has been a rise in dual-focus healthcare companies—those that work to gather cash payments from patients while also building their insurance-taking business. This creates some financial flexibility for a medical practice, but also becomes another thing to manage. As a builder of an electronic health record (EHR) platform, I can attest that diversification of practice revenue creates technical challenges for which most EHR billing platforms are not well-designed. My company is in the unique position of serving primary care customers across a diverse set of payment models: a large segment of the 'direct primary care' (DPC) market, thousands of fee-for-service practices, groups exploring concierge or hybrid models, and a variety of value-based care innovators. DPC is a type of primary care payment model that skips insurance and collects regular membership fees either from patients or their employers. This model emerged in 2016, with membership growth now estimated at 36% a year. Concierge programs are another approach, where the practice still bills insurance but also charges a membership fee for services not covered, such as text replies and expanded access. Blended practices are exploring new ways to support a mix of some or all of those payment options across their patient populations. In order to succeed in this reimbursement complexity, practices need several things, including legal advice on compliance for their payment portfolio and support in both their EHR and billing workflows. We're getting closer to that today— artificial intelligence (AI) approaches are helping alleviate billing administration so practices can build an extremely diversified reimbursement portfolio for their patients. The goal of technology should be that the clinician focuses on the complex and nuanced work of caring for the patient, while their systems make sure they get paid, no matter the model. Today, Dr. R told us she is thinking about adding on a small concierge fee, enabling families to access a nurse practitioner on staff for after-hours care and lactation support. She's trying her best to work within our broken healthcare system to keep her practice running and her young patients able to receive medical care. Financial stability and success for independent medical practices matter tremendously. Their survival is crucial to the US healthcare system. These are the practices serving socially vulnerable populations, preventing unnecessary patient hospital admissions at higher rates, and delivering on patient outcomes improvements with less clinician burnout. This complex, blended revenue approach can help, and I think not a moment too soon.
Fast Company
2 hours ago
- Fast Company
Wellness isn't a perk—it's a leadership imperative
In the wellness industry, there's a motto I adopted a long time ago: 'Live the brand.' For me, that means showing up for myself first—mentally, physically, emotionally. The reason is simple: I can't champion health if I'm constantly running on empty. And yet, every day I see high-profile leaders in the wellness space doing exactly that. Creating a culture of wellness within the organization begins with embodying that mindset ourselves. Leadership is more than just ensuring we hit our quarterly numbers or leading strategy sessions—it's about modeling the behaviors we want to see within the organization. If you want your team to prioritize their health, show them what that looks like. Be the one who arrives with energy, not burnout. Put proper nutrition before convenience in the office—for example, replace snack machines with access to fresh, healthy food. Go for a lunch-hour walk to unwind. Say 'no' to a second round of drinks at work functions. When leaders 'walk the talk' it has the potential to change the entire energy in a workplace. It's a common misconception that great leaders have to sacrifice themselves to be effective. I learned the hard way that the opposite is true. I lead better when I carve out time in my day to move, to clear my head, to eat something real, to take time to just breathe and reset my emotions. This is strategic self-care, not selfishness. The habits leaders model serve as silent permission slips. Your team will mirror your example. If you push through exhaustion, they'll feel they must do the same. But if you normalize rest and well-being, you give others the freedom to care for themselves, too. Yes, we're all busy. But wellness isn't what happens after your to-do list is done—it's what helps you get through it without burning out. I start with small but steady rituals. I express gratitude first thing in the morning—even before checking texts and emails. That one habit changes how I show up. I also take 10-minute breaks in the afternoon to reset. These aren't luxuries—they're essentials. And they're accessible to anyone willing to try. Wellness doesn't require hours every day, but it does require intention. That might mean checking in on stress levels or using mindfulness to stay focused. If we're not intentional, we carry stress home—into our relationships, our families, and our long-term health. This isn't theoretical for me. I've been on the edge of burnout more than once. Not because I lacked tools, but because I wasn't using them. That's the irony of working in wellness. You know what to do, but when life gets overwhelming, it's easy to let those habits slip. I knew the value of movement, real food, rest, and mindfulness, but I prioritized everything—and everyone—else. Things shifted when I stopped treating wellness like another to-do and started living it. My focus improved. My leadership did, too. I remembered: You can't give what you don't have. Leading strong, resilient teams starts with caring for the humans doing the work—including yourself. People often ask about the ROI of wellness programs. I get the skepticism—many programs are performative. A bowl of fruit or an unused meditation app doesn't move the needle. But when wellness is truly integrated and linked to outcomes, it becomes a competitive advantage. That means fewer sick days, better retention, lower medical costs, and stronger performance. When I was at My Fit Foods, we partnered with oil and gas companies to provide employees with healthy meal subsidies. While improving employee nutrition was one of the goals, performance was the driver. Employees reported better focus, fewer energy crashes, and overall improved well-being. Wellness wasn't a perk—it was a productivity tool. Start small. Try something specific, such as a wellness allowance, guided meditation times, or delivery of nutritious meals. Monitor the outcomes and expand on what is found to be successful. When you connect wellness to outcomes leaders already care about, the conversation changes from 'Why do this?' to 'What can we do next?' Above all, participation by leadership is an absolute must. When leaders not only encourage, but also model wellness in the workplace, wellness becomes the culture—not just a policy. If your company's just starting out on its wellness journey, here's my best advice: keep it simple, keep it human, and lead your team with empathy. You don't need a huge budget or overly complicated plan. What you do need is a real commitment to supporting your team. Ask them what they actually need to feel supported—physically, mentally, emotionally, even spiritually. Use surveys, town halls, and conversations. Use their feedback to build meaningful and inclusive pilot programs. And more than anything, work toward making wellness part of your culture. This wellness program isn't about a new benefit or perks. Rather, it's about creating a place where your team feels safe, energized, and genuinely valued for their contributions. In the end, wellness isn't about perfection; it's about showing up for yourself and your team, consistently. You don't need to overhaul your entire life overnight. But you do need to start somewhere, even if it's a small step in the right direction. So, take the walk. Book the workout. Close the laptop at a reasonable hour, and keep it closed until the next day. Your team, your family—and most importantly, your future self—will thank you.
