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CNN Live Sunday

New Privacy Laws Enacted This Weekend

Aired April 15, 2001 - 17:33   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
STEPHEN FRAZIER, CNN ANCHOR: New rules are going into place that are intended to give you a little more privacy as you negotiate the world of health care. Companies have two years to begin to implement the rules.

Here's CNN's Christy Feig with what they should mean for consumers.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN CORRESPONDENT (voice-over): The privacy rules will be the first national protections ever to safeguard a patients' medical information.

TOMMY THOMPSON, HEALTH AND HUMAN SERVICES SECRETARY: The patient can feel, you know, really secure about knowing that if they go see the doctor, those records are private between that person and their doctor.

FEIG: Under the rules patients must give written consent before their medical information can be used by anyone other than their provider. Patients can review their records and suggest changes. If the information is misused, there are penalties.

These rules were originally introduced by President Clinton. The Bush administration will modify a few of the rules it thinks are too strict.

THOMPSON: If the rules were strictly enforced and interpreted, the way that some people think they are, the doctor would not be able to talk to the lab technician about your lab reports unless you signed the consent report to allow that to happen. And you don't want that to take place.

FEIG: Another rule that will probably be changed involves who can pick up prescriptions.

THOMPSON: You would have to sign a consent and you would not allow your husband or your wife to go pick it up, and that's going to cause a lot of confusion.

FEIG: Advocates for privacy protection are pleased even if some of the rules will be changed. Janlori Goldman of the Health Privacy Project at Georgetown University says one out of six people use less health care, because they're afraid their information will be misused.

JANLORI GOLDMAN, DIRECTOR, HEALTH PRIVACY PROJECT: People have been putting their own health care at risk to protect their privacy. And with these new regulations, we know that people will now have greater trust and confidence in our health care system.

FEIG: One medical ethicist says there's a drawback, these rules won't cover everyone.

ART CAPLAN, BIOETHICIST, UNIVERSITY OF PENNSYLVANIA: The private sector isn't always covered by these rules. So if you work at a big company that's self-insured, they may choose to go along, but they don't have to go along.

FEIG (on camera): Experts say there may be some added benefits to these rules. They will help protect patients from genetic discrimination, and even protect doctors who voluntarily report medical errors.

Christy Feig, CNN, Washington.

(END VIDEOTAPE)

FRAZIER: We are joined now by two people who should be able to ad a lot of context to the new federal rules, which are designed to keep health information private. Attorney Jim Pyles has been involved in efforts to improve patient privacy for some time now, and Mary Grealy is president of the Healthcare Leadership Council.

Welcome to you both. Thank you for joining us. Happy Easter.

MARY GREALY, HEALTHCARE LEADERSHIP COUNCIL: Thank you.

FRAZIER: Mr. Pyles, let me ask you first, if you could explain what it was Arthur Caplan was saying there. He talked about companies that self insure. We should probably straighten that out before we go on. Corporations that self insure do what, exactly, and why is that a larger threat to their employees in terms of privacy?

JIM PYLES, ATTORNEY: Well, companies that self insure have access to information for health insurance determination purposes, but also, perhaps, for employment discrimination purposes, and that is a real concern to many privacy advocates and citizens generally.

FRAZIER: They have that -- let's back up, even. They have that because they pay the bills for medical care, is that right?

PYLES: They pay the bills, but often what happens, and this has been a growing practice, is that insurance companies request far more information than they really need to pay the claim, they keep it for longer, and they use it for purposes other than just paying the claim. They perhaps sell the information, use it for some sort of marketing purposes, and that is a growing trend and it's growing erosion of a basic right to privacy which citizens of this country have come to expect that they have.

FRAZIER: Who would want to buy my medical information? What value would it be to anyone?

PYLES: Well, it's of great value to folks who would want to sell you certain types of services or products or pharmaceuticals. It's perhaps for folks who might even want to track you down because they want to know where you are or what kind of health you're in. We've had people who've had their mortgages canceled when banks got a hold of information that showed they were in poor health or suffering from a terminal illness.

But I think the bottom line here is that privacy is a fundamental right of all Americans, and it is crucial to quality health care. You cannot have quality health care without privacy, and Saturday, when these regulations went into effect, is truly a red-letter day for all consumers and all Americans.

FRAZIER: Mrs. Grealy, these regulations actually were only approved on Thursday, go into effect Saturday, because the administration was lobbied by a lot of companies which didn't like them. What's not to like about them? What are the concerns you have?

GREALY: Well, we recognize many of the concerns that Jim has pointed out, and we feel that many of those concerns are addressed by this regulation. But unfortunately, it goes too far, and really impedes health professionals providing your care. There are requirements in here that will result in much more paperwork than currently exists in the system, and would limit the amount of information that those treating you could share among each other.

We want to make sure that we are positive that you get the best treatment, promptly and efficiently. We don't want, as Secretary Thompson pointed out, people not being able to have their lab tests discussed with their physician, not being able to get your prescription filled.

So, we need to address things outside the health care system, such as we've heard about marketing and others disclosing information to your employer that shouldn't be disclosed. But we also need to make sure that the health care professionals, doctors, nurses and others, have the information about you that they need to provide your treatment.

FRAZIER: This becomes a bigger issue because of computerization, isn't that right?

PYLES: Yes, that's true.

GREALY: Yes, I think that's the concern that's been raised by many. PYLES: I think with the increased computerization, it's now possible to disseminate someone's medical records literally around the world with the press of a button, and that's why I think I would definitely with what President Bush said when these regulations -- when he announced these regulations would go into effect, and that is this is a tremendous victory for American consumers.

But I would say it's not just consumers, it's all Americans, and they did go into effect on Saturday, and as of that date, these rights, protected by these regulations, do vest, and companies have two years to come into compliance. But as of Saturday, these rights vest in all Americans and they're available to them regardless of the state in which they live.

FRAZIER: Are you saying then, and this kind go to either of you, that that kind of data mining that you mentioned a moment ago, Mr. Pyles, that would not happen in my case now starting Saturday?

PYLES: It's much more difficult now since these regulations require some sort of permission or consent or authorization for most uses of medical information, and in accounting of the uses so you will know how your information is being used in the future.

FRAZIER: Ms. Grealy, you pointed out, though, computerization or not, it really was about a person's intent. I mean, somebody could go into my paper file in a doctor's office and trade out my data if there were some incentive for him to do that, say, you know, an underpaid worker in a doctor's office.

GREALY: Yes, absolutely. I think we have to recognize that paper files are probably more at risk than some of the electronic files. We have many encryption systems available today. We have passwords, access codes, and frankly, you leave an electronic footprint that can be tracked.

But I think it's important that we know that there are severe penalties in these regulations for those who violate privacy rights, and Jim is exactly right. Those rights now vest, which is why we need to work quickly to make sure that physicians, hospitals, doctors and others that need to use your information don't have artificial barriers in the way. And so, we'll have to correct those rules very quickly.

FRAZIER: Well, thank you both for explaining them for us. They are complicated, they are sweeping, and we're grateful for those insights. Jim Pyles, Mary Grealy, thanks.

GREALY: Thank you.

PYLES: Thank you.

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