20 States Sue HHS and DHS for Unauthorized Data Sharing of Medicaid Information

Strategic Insights -

A coalition of 20 Democratic-led states, led by California, has filed a lawsuit in federal court against the U.S. Department of Health and Human Services (HHS) and the Department of Homeland Security (DHS) for allegedly sharing sensitive Medicaid data with immigration enforcement authorities without public notice or consent. The lawsuit, spearheaded by California Attorney General Rob Bonta, claims that HHS Secretary Robert F. Kennedy Jr. and DHS Secretary Kristi Noem have engaged in unlawful data sharing practices, violating multiple federal statutes, including the Administrative Procedure Act, the Social Security Act, the Privacy Act of 1974, HIPAA, and the Federal Information Security Modernization Act. The plaintiffs argue that the data transfer has compromised the trust between Medicaid beneficiaries and state programs, and has the potential to deter immigrants from accessing essential medical care.

Key Takeaways:

  • 20 Democratic-led states, led by California, have filed a lawsuit against HHS and DHS for unlawful data sharing of Medicaid information.
  • The lawsuit names HHS Secretary Robert F. Kennedy Jr. and DHS Secretary Kristi Noem as defendants in their official capacities.
  • The complaint alleges that HHS's Centers for Medicare & Medicaid Services and DHS's Immigration and Customs Enforcement have shared protected health information from millions of Medicaid recipients without notice or public input.
  • The plaintiffs argue that the data transfer violates multiple federal statutes, including HIPAA and the Federal Information Security Modernization Act.
  • The lawsuit seeks declaratory and injunctive relief to halt any further data sharing and to require HHS and DHS to adhere to statutory privacy and data security standards.
  • Palantir has been contracted to build a database using federal benefit data, including Social Security recipient information and individuals' tax information, raising concerns about misuse.
  • The unauthorized disclosure of Medicaid data risks a chilling effect on enrollment among immigrant communities, sparking concerns about public health.
  • Over 300,000 children and adults are enrolled in Rhode Island Medicaid, with the program covering 43 percent of all births in the state.

Statistics:

  • 300,000: The number of children and adults enrolled in Rhode Island Medicaid (Kaiser Family Foundation).
  • 43 percent: The percentage of all births in Rhode Island covered by Medicaid (Kaiser Family Foundation).
  • 25 percent: The percentage of Medicaid enrollees who are children (Kaiser Family Foundation).
  • 20: The number of Democratic-led states that have joined the lawsuit.

Sources:

  • A complaint filed in the U.S. District Court for the Northern District of California on July 1 (as per the original text).
  • A press release by Rhode Island Attorney General Peter Neronha.
  • The Kaiser Family Foundation.
  • BridgeTower Media.