PRESS RELEASE
For Immediate Release
Tuesday, October 30, 2001

======================================
Citizens’ Council on Health Care
1954 University Ave. W., Suite 8
St. Paul, MN 55104
http://www.cchconline.org
======================================
CONTACT:Twila Brase, R.N., President
PHONE: 651-646-8935
======================================


CCHC Disputes NAIC’s Opt-in Privacy Protections
for Gramm-Leach-Bliley Legislation

Rep. Karen Clark asks to distribute CCHC form to constituents


St. Paul, Minnesota—CCHC’s testimony served to dispel the perception that medical privacy is protected in proposed Gramm-Leach-Bliley conforming legislation. Privacy issues of the various state proposals were discussed this morning in a joint hearing of the Minnesota House Jobs and Economic Development Policy Committee and the Minnesota Senate Commerce Committee. The joint committee was chaired by Rep. Greg Davids (R-Preston) and Sen. Linda Scheid (D-Brooklyn Park)

”There are at least 31 exceptions to the requirement for consumer consent in the opt-in provision” of the NAIC model draft legislation, said Twila Brase, president of CCHC who provided legislators with CCHC’s privacy declaration forms.


OPT-IN VERSUS OPT-OUT

The National Association of Insurance Commissioners (NAIC) has provided draft legislation that states can enact to meet the federal requirements of the Financial Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act. The NAIC would provide for opt-out provisions for financial data and opt-in provisions for health data. Opt-in requires consent before sharing of data. Opt-out allowing sharing of data until the consumer asks it to be discontinued.


RAMIFICATIONS FOR MEDICAL PRIVACY DISPUTED

CCHC made it clear that the NAIC exceptions provide little protection of medical data, and that Minnesota’s medical records law could also be negatively impacted. Minnesota medical records law is the nation’s most protective regarding medical research. Patient consent is required.

Disputing Rep. Fran Bradley’s (R-Rochester) assertion that Minnesota’s medical privacy law has “unintended consequences” and Department of Commerce Commissioner James Bernstein’s assertion that citizens “cannot participate in legitimate research,” Brase noted that Minnesota’s consent requirement exists only for researchers external to the institution holding the medical records. In addition, patients who do not respond to letters requesting patient consent for access by external researchers, are considered to have given ‘implied consent’ - perhaps against their wishes. Brase recalled that according to testimony given by Mayo Clinic several years ago, approximately 16 percent of Mayo’s patients are considered to have given implied consent.


CONSUMER FORMS DISTRIBUTED TO COMMITTEE

To delineate the 31 exceptions, Brase distributed to the committee CCHC’s recently released Declaration form for financial institutions. One additional exception was added to the form to clarify that no consent is required to share information with affiliated third parties.The form provides consumers with accurate information on data sharing and allows consumers to express their intent for the handling of their personal, medical and financial data. As Brase explained to the committee, consumers can sign and date the form and provide it to their financial, investment and insurance institutions.

Rep. Karen Clark (D-Minneapolis), who had already noted her opposition to opt-out provisions, asked Brase if she could mail the CCHC form to all her constituents. Brase replied in the affirmative, noting that the Declaration form, along with other Declaration forms (federal privacy rule exceptions to consent and the OASIS federal home health database), is publicly available on the CCHC website: http://www.cchconline.org

- 30 -

Citizens’ Council on Health Care is a non-profit 501©3 independent national health care policy organization based in St. Paul, Minnesota.



*************************************************************
A citizens resource for designing the future of health care
*************************************************************

Citizens’ Council on Health Care
1954 University Ave.W., Suite 8
St. Paul, MN 55104
651-646-8935 phone
651-646-0100 fax
http://www.cchconline.org
**************************

NOTE: If you do not wish to receive this email,
contact CCHC to remove your name from the list.
Thank you.

ALL INFORMATION, DATA, AND MATERIAL CONTAINED, PRESENTED, OR PROVIDED HERE IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS REFLECTING THE KNOWLEDGE OR OPINIONS OF THE PUBLISHER, AND IS NOT TO BE CONSTRUED OR INTENDED AS PROVIDING MEDICAL OR LEGAL ADVICE.  THE DECISION WHETHER OR NOT TO VACCINATE IS AN IMPORTANT AND COMPLEX ISSUE AND SHOULD BE MADE BY YOU, AND YOU ALONE, IN CONSULTATION WITH YOUR HEALTH CARE PROVIDER.