Summary of the Perfected Version of the Bill

HS HB 891 -- DISCLOSURE OF HEALTH INFORMATION (Smith)

This substitute prohibits the selling of personal health
information to a third party or the disclosure of information to
a third party for the purpose of:  (1) marketing a product or
service; (2) employment decisions; or (3) credit worthiness.
The substitute does not apply in cases where the person cannot
be identified from the information or when the person provides
written authorization.  The substitute does not prohibit
disclosure of information that is necessary in the providing of
health care or to comply with any other state or federal law.

Insurance entities are deemed to be in compliance with the
substitute upon either:  (1) demonstrating a good faith effort
to comply with federal privacy rules; or (2) complying with
model legislation adopted by the National Association of
Insurance Commissioners.  The Department of Insurance will
enforce the substitute regarding insurance entities, who may be
sued for unfair trade practices.  Any other person in violation
may be fined up to $500 for each violation and may be civilly
liable for damages or equitable relief.

The substitute also establishes the Commission on Health
Information Privacy, to be comprised of 15 people from various
health care industry, governmental, and consumer groups.  The
commission must make recommendations to the General Assembly by
January 1, 2003, regarding any additional legislation needed to
protect the privacy of personal health information.

The substitute will become effective January 1, 2002.

FISCAL NOTE:  Estimated Net Cost to General Revenue of $48,797
in FY 2002, $0 in FY 2003, and $0 in FY 2004.


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Last Updated November 26, 2001 at 11:46 am