Exchange already hacked
"With the news that the Utah health exchange -- one of just two state-run online insurance marketplaces in operation -- was recently hacked, states planning their own exchanges as prompted by the Affordable Care Act (ACA) might want to take a closer look at how they’ll handle cybersecurity."
Private firms, like your insurance broker, fear allowing this to happen as it can put them out of business. The notification requirements of a potential break-in alone could bankrupt someone, let alone paying any damages. When the government is careless and gives away a few million peoples' personal info, no big deal, they usually can't be sued and even if they are its not their money.
A notoriously careless entity holding personal and sensitive info on 300 million people, what could possibly go wrong. Wiki Leaks Health Edition?
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