Lawmakers Urge OPM to Stop Plan to Collect Federal Workers’ Health Data
Congressional scrutiny is mounting over a Trump administration plan to collect data on health insurance claims from federal employees and retirees.
In a pair of letters, Congressional Democrats asked the Office of Personnel Management (OPM) to “immediately cease all work” toward finalizing the request, citing privacy concerns, cybersecurity risks, and the potential misuse of sensitive health information.
The proposal, published in the Federal Register in December, would require about 65 insurers participating in the Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) programs to submit monthly reports on “service use and cost data” including “medical claims, pharmacy claims, encounter data, and provider data,” with no requirement that identifying information be removed.
OPM said the proposal is intended to give the agency greater visibility into how health insurance plans are used, allowing it to better ensure that they deliver “competitive, quality, and affordable” coverage for federal workers and retirees.
Such data collection is commonly used by large employers and insurers to monitor costs and evaluate plan performance, though the scope of the federal proposal has raised concerns among lawmakers.
Democrats Reject OPM Claims
House Democrats referenced security concerns, citing the OPM data breach in 2015, and the Department of Government Efficiency’s (DOGE) access to OPM’s data system in early 2025.
“By collecting data currently held by 65 insurance carriers into one database, expanding OPM’s access to employee data to include detailed personal health information would significantly heighten the risk of misuse, unauthorized disclosure, or exploitation by bad actors,” wrote Democrats on the House Oversight Committee in a letter to OPM and the Office of Management and Budget (OMB).
Democrats also warned that the action may violate the Health Insurance Portability and Accountability Act (HIPAA) and are concerned the administration could use health data to target employees for political reasons.
“This administration has demonstrated a cavalier approach toward utilizing sensitive data, breaking down firewalls that work to protect individuals’ privacy and security, and an incompetence in protecting that data. " stated the letter from senators, led by Senators Mark Warner (D-VA) and Adam Schiff (D-CA).
OPM declined to comment to multiple publications on the letters.
