Privacy concerns over website prompt reversal

Associated Press

WASHINGTON

Bowing to privacy concerns, the Obama administration reversed itself Friday, scaling back the release of consumers’ personal information from the government’s health insurance website to private companies with a commercial interest in the data.

The administration made the changes to HealthCare.gov after The Associated Press reported earlier this week that the website was quietly sending consumers’ personal data to companies that specialize in advertising and analyzing Internet data for performance and marketing.

The personal details included age, income, ZIP code, tobacco use and whether a woman is pregnant.

That prompted lawmakers to demand an explanation, while privacy advocates called on the administration to make changes.

Analysis of the website Friday by the AP showed that the administration had made changes to reduce the outbound flow of personal information. Before that, the website was explicitly sending personal data to third-party sites.

The site is used by millions to sign up for coverage under the health care law, or to merely browse for insurance plans in their communities.

The changes were confirmed by Cooper Quintin, a staff technologist with the Electronic Frontier Foundation, a civil-liberties group. Quintin called it “a great first step,” but said the administration needs to do more.

An administration spokesman did not respond to a request for a comment Friday.

Officials of the Health and Human Services Department had at first defended their information-sharing practices, saying the outside companies used the data only to analyze the workings of HealthCare.gov and make improvements to the website that benefit consumers. There is no evidence that consumers’ personal information was misused, they said.

Created under President Barack Obama’s health care law, HealthCare.gov is the online gateway to government-subsidized private insurance for people who lack coverage on the job. It serves 37 states, while the remaining states operate their own insurance markets. The privacy issue surfaced just as the president was calling for stronger Internet safeguards for consumers.

Sens. Orrin Hatch, R-Utah, and Charles Grassley, R-Iowa, called it “extremely concerning” for consumers. Grassley said Friday it’s still unclear how consumers’ information is being used.

“People using HealthCare.gov should have the confidence that their information is secure and not being used for sales pitches by outside firms,” he said in a statement.

Third-party outfits that track website performance are a standard part of e-commerce. It’s a lucrative business, helping Google, Facebook and others tailor ads to customers’ interests.