HCS HB 1425 -- HEALTH RECORDS

SPONSOR:  Smith

COMMITTEE ACTION:  Voted "do pass" by the Committee on Civil and
Administrative Law by a vote of 8 to 0.

This substitute prohibits the selling of personal health
information to a third party and prohibits any disclosure of this
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, the person
provides written authorization, or when disclosure of this
information is necessary to comply with any other state or
federal law.  The substitute exempts consumer reporting agencies
and debt collectors and exempts businesses that are providing
this information as part of the sale or merger of a business.

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.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that more privacy is required for
banking and financial records than for medical records.
Companies are now in the business of selling medical information
to third parties.  Also, many companies share that information
with a variety of other companies with which they have some kind
of affiliation.

Testifying for the bill were Representative Smith; Department of
Insurance;  Department of Health and Senior Services; and Office
of the Attorney General.

OPPONENTS:  Those who oppose the bill say that some of the
restrictions and prohibitions are unclear and may be interpreted
too broadly.  Self-reported data, such as answering survey
questions, should be exempt.  Also, granting a civil cause of
action to individuals is an inefficient and costly remedy.  The
Department of Insurance can properly enforce such laws.

Testifying against the bill were Consumer Data Industry
Association; Blue Cross/Blue Shield; and Mid-American Health.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am