The NY Times covered this story today, too. Basically, using public information, they we able to match people to their DNA.
Here's an interesting demonstration on how this can be done.
This is scary for a lot of reasons, not least of which is health insurance and employment. Forget HIPAA. Your life is an open book. Be worried. Be very worried.
We have two books publishing soon that address this.
The Complete Book of Data Anonymization: From Planning to Implementation by Balaji Raghunathan publishing on February 25, 2013 and Guide to the De-Identification of Personal Health Information by Khaled El Emam publishing on April 29, 2013.