The Trump Administration Is Seeking Federal Workers’ Sensitive Medical Data. That’s Raising Alarms.

Business News

About a year ago, I was stationed in downtown D.C. on an especially chilly spring day, watching hundreds of federal employees line up outside their office buildings. 

In a humbling exercise, employees were waiting to test whether their entry badges still worked at the Department of Health and Human Services — or whether they’d be walked back out by security because they were among the 10,000 unlucky ones whose jobs had suddenly been eliminated.

I thought back to that day recently as I researched and reported on a significant, under-the-radar proposal from the Office of Personnel Management, which oversees federal workers. 

According to a notice posted in December, OPM is seeking personally identifiable medical and pharmaceutical claims information on federal employees and retirees, as well as their family members, who are enrolled in the Federal Employees Health Benefits or Postal Service Health Benefits programs. Just over 8 million Americans get coverage through such plans.


Email Sign-Up

Subscribe to KFF Health News’ free weekly newsletter, “The Week in Brief.”

Right now, 65 insurance companies maintain data the agency wants, including information on prescriptions, diagnoses, and treatments. That would put a tremendous amount of personal information about federal employees in the hands of an administration that has earned a reputation for taking retaliatory action against some workers and sharing sensitive data across agencies as part of its immigration and fraud crackdowns.  

My colleague Maia Rosenfeld and I wanted to know what lawyers and ethicists who work on health policy issues think about this proposal.  

On the one hand, sources told us, this sort of detailed data could be used by the federal government to improve the largest employer-sponsored health insurance system in the country. 

But doubts about the Trump administration’s motives percolated through every conversation we had. 

“The concern here is the more information they have, they could use it to discipline or target people who are not cooperating politically,” Sharona Hoffman, a health law ethicist at Case Western Reserve University, told me.  

And, though the notice states that insurers are legally permitted to disclose “protected health information” to the agency for “oversight,” Hoffman and others raised questions about OPM’s access to such a sweeping database of medical records under federal health privacy laws.  

Insurance companies — several of which declined to comment — would have to provide monthly reports to OPM with data on their members. One insurer, CVS Health, said in a public comment that insurers would be breaking the law by providing the information for OPM’s “vague and broad general purposes.” The association that represents many of those companies also has voiced objections to the proposal, which has not yet been finalized.  

OPM spokespeople did not respond to our repeated requests for comment.

Read More
Amanda Seitz

Latest

How Does an LLC Work?

An LLC, or Limited Liability Company, combines the advantages of corporations and partnerships, providing personal liability protection for its members. This means your personal assets are shielded from business debts. Moreover, LLCs typically enjoy pass-through taxation, which simplifies how profits and losses are reported on personal tax returns. With flexibility in management structure, LLCs can

Wintermute Launches Armitage DeFi Vault Platform for Institutions

You are here: Home / Cryptocurrency News / Wintermute Launches Armitage DeFi Vault Platform for Institutions Wintermute has announced Armitage, a new DeFi vault curation business for professional investors and institutions. The algorithmic trading firm said the product will support risk management and yield generation in decentralized lending markets through on-chain, non-custodial vaults for users

What Is a Sole Proprietor Business?

A sole proprietor business is a straightforward structure where you’re the sole owner, and there’s no legal distinction between you and your business. This means you have complete control over operations and profits, but it additionally means you bear personal responsibility for any debts or liabilities. With minimal paperwork and simple tax management, it’s an

SUI Price Eyes $1.50 as Ramp Integration Boosts Bullish Momentum

You are here: Home / Cryptocurrency News / SUI Price Eyes $1.50 as Ramp Integration Boosts Bullish Momentum SUI price has gained momentum following Ramp’s announcement to support Sui-based USDC payments, driven by growing optimism around Sui’s expanding payment and utility ecosystem. Stablecoin payment integrations are becoming increasingly important for Layer-1 ecosystems as blockchain networks

Newsletter

Don't miss

How Does an LLC Work?

An LLC, or Limited Liability Company, combines the advantages of corporations and partnerships, providing personal liability protection for its members. This means your personal assets are shielded from business debts. Moreover, LLCs typically enjoy pass-through taxation, which simplifies how profits and losses are reported on personal tax returns. With flexibility in management structure, LLCs can

Wintermute Launches Armitage DeFi Vault Platform for Institutions

You are here: Home / Cryptocurrency News / Wintermute Launches Armitage DeFi Vault Platform for Institutions Wintermute has announced Armitage, a new DeFi vault curation business for professional investors and institutions. The algorithmic trading firm said the product will support risk management and yield generation in decentralized lending markets through on-chain, non-custodial vaults for users

What Is a Sole Proprietor Business?

A sole proprietor business is a straightforward structure where you’re the sole owner, and there’s no legal distinction between you and your business. This means you have complete control over operations and profits, but it additionally means you bear personal responsibility for any debts or liabilities. With minimal paperwork and simple tax management, it’s an

SUI Price Eyes $1.50 as Ramp Integration Boosts Bullish Momentum

You are here: Home / Cryptocurrency News / SUI Price Eyes $1.50 as Ramp Integration Boosts Bullish Momentum SUI price has gained momentum following Ramp’s announcement to support Sui-based USDC payments, driven by growing optimism around Sui’s expanding payment and utility ecosystem. Stablecoin payment integrations are becoming increasingly important for Layer-1 ecosystems as blockchain networks

Tesla’s Business Has Become Much More Diversified in Just the Past Five Years. Does That Make Its Stock a Better Buy Today?

Key Points Tesla's energy generation and storage segment generated 27% revenue growth last year. The company's non-automotive segments were able to help offset a double-digit decline in auto revenue in 2025. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) is known for its electric vehicles (EVs), and while they

WD sees sustainability as key business driver in an ‘AI economy’

Hard drive company WD promoted long-term operations and sustainability executive Jackie Jung to become its first chief sustainability officer in February, as it steps up sales to companies building AI data centers. Her vision: Turn sustainability into a “brand” for WD, a strategy that reduces risk for the $6 billion company (formerly known as Western

5 Business Ideas Worth Starting in 2026

If there is one thing Nigerians understand well, it is how to spot opportunity inside hardship. In 2026, that mindset will matter more than ever. The economy is tough, competition is rising, and many people are looking for smarter ways to earn, build, and survive. But even in a difficult environment, some businesses still stand