UniCare, the company that administers the GIC Indemnity Plan, made an internal decision to stop posting Social Security numbers on the explanation of benefit (EOB) statements that are mailed to retirees. Company officials made the decision to ward off the possibility of the numbers falling into the wrong hands and being used fraudulently.

The change in policy only applies to the EOB statements. Members will still have their Social Security numbers posted on their insurance cards - something the Association has fought to change.

To date, GIC officials have stated that, due to technology limitations, the agency does not have the ability to issue "dummy" identification numbers to enrollees. The "dummy" numbers would take the place of one's actual Social Security number as a precaution against fraud.

Members may also recall that the federal government has established protections over the release of a person's medical records. Under the Health Insurance Portability and Accountability Act (HIPAA), the feds issued privacy rules which require most private and public employers, that offer health benefits, to implement policies and procedures aimed at maintaining the privacy of an individual's medical information.

However, HIPAA does not address the use of Social Security numbers for purposes of identifying an enrollee in their health insurance plan. While an insurance plan could offer an alternative to the use of the Social Security number, it was not required to provide such an alternative.

"There's no question that large amounts of personal information, including tax information, credit history and medical records, are keyed to an individual's Social Security number," comments Insurance Coordinator Cheryl Stillman. "By limiting its use, it's argued that you may reduce the likelihood that a person's identity could be stolen."

"We have filed legislation that would provide retirees and survivors with the option of having a number, other than their Social Security number, used for insurance purposes. The bill goes much further than the Unicare practice and offers added protection if one so wishes."