[Med-privacy] Insurance commissioners' model privacy rules

[Peter Marshall]

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PRIVACYSECURITYNETWORK-Healthcare
Site Update for the week of Sept. 18, 2000
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NEWS PROVIDED BY:
Health Information Privacy Alert

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NAIC ADOPTS MODEL HEALTH, FINANCIAL PRIVACY REGULATION

The National Association of Insurance Commissioners (NAIC) is on the
verge of adopting a model regulation governing consumer financial and
health information. A privacy working group adopted the model proposal
Sept. 12 and final adoption by the entire association is planned for
Sept. 26.

However, the drafters noted the limitations of their model regulation,
which is designed for adoption and use by state governments.
=ECCongressional action to protect privacy across the country will
assure consumers that their personal information will be protected
regardless of where they live and regardless of which financial entity
collects the information," observed Kathleen Sebelius, Kansas
Commissioner of Insurance, NAIC Vice President and Chair of the
Privacy Issues Working Group.

The NAIC model regulation follows the provisions of the
Gramm-Leach-Bliely Act, also known as Financial Services Modernization
Act. A section has been added protecting health information and
provides for companies wishing to share, sell, market or give away
health information, except for specific business exceptions, to get
authorization from consumers.

The NAIC already adopted a model health information privacy law in
September 1998, but few states have taken steps to put it on their own
books.

National Association of Insurance Commissioners Draft Model Regulation
on Privacy of Consumer Financial and Health Information.
http://www.privacysecuritynetwork.com/healthcare/NAICprivdrft.pdf